Shares of Watches of Switzerland (LSE: WOSG) climbed 8.9% during Thursday morning trading as the company reported robust growth in annual revenue.
In the fiscal year ending on April 30, Watches of Switzerland recorded a pretax profit of £154.8 million, representing a 23% increase compared to the previous year’s £126.2 million. Furthermore, the company’s revenue experienced significant growth, surging by 25% to reach £1.54 billion, up from £1.24 billion in the previous financial year.
Notably, the UK and Europe regions saw a revenue increase of 9.9%, amounting to £890 million, compared to the previous year’s figure of £810 million. Meanwhile, the US market outperformed with a remarkable 53% revenue growth, totalling £653 million, up from £428 million.
The strong performance can be credited to a solid 28% increase in luxury watch sales, coupled with a 10% rise in luxury jewellery sales.
Brian Duffy, Chief Executive of Watches of Switzerland, attributed the company’s record-breaking performance to its enduring luxury brand partnerships, dedicated colleagues focused on delivering exceptional client service, and well-invested showrooms supported by leading multi-channel capabilities.
Watches of Switzerland maintains its guidance for the fiscal year 2024, anticipating revenue between £1.65 billion and £1.70 billion, representing an 8% to 11% growth at constant currency rates. The company expects its adjusted earnings before interest and tax margin to align with the 10.7% achieved in the previous fiscal year.
Duffy expressed confidence in the company’s organic growth strategy, while actively pursuing additional inorganic growth opportunities to enhance future performance. Watches of Switzerland’s current position surpasses expectations outlined in the long-range plan presented in 2021. An updated long-range plan, outlining growth ambitions beyond the years 2026 to 2028, will be presented later this year.
Watches of Switzerland does not distribute dividends to its shareholders.
