Luxury watch and jewellery retailer Watches of Switzerland reported revenues of £974 million in the first half of the year to November, up 15 per cent compared with the same period last year at constant currencies. The London Stock Exchange-listed company said its financial performance had been better than expected, with the retailer demonstrating resilience despite broader cost-of-living concerns affecting UK households.
Growth was driven primarily by the US market, where revenues surged 22 per cent year on year. The UK showed more modest expansion, with sales rising 9 per cent. The company reported a standout performance in its showrooms, where luxury jewellery sales climbed 31 per cent. Sales growth accelerated in flagship boutiques and across many regional cities in the UK, the retailer said.
Watches of Switzerland sells high-end brands including Rolex, Cartier and Patek Philippe, and partners with jewellery brands such as Roberto Coin, Goldsmiths, Mappin & Webb, and Mayors. Chief executive Brian Duffy attributed the strong performance to the company's market position and execution, noting that the results reflected enduring demand for luxury watches and jewellery despite an unsettled macroeconomic backdrop.
Adjusted earnings for the first half are expected to be between £87 million and £89 million. Looking ahead, Watches of Switzerland raised its full-year revenue guidance to growth at the upper end of its previous range, between 7 per cent and 10 per cent.
According to market analysis, the retailer's performance underscores a divide in consumer spending. While much of the retail sector contends with cautious shoppers and stretched household budgets, customers willing to spend significant sums on luxury items such as high-end watches and jewellery appear less affected by economic pressures, particularly in America.