Watches of Switzerland confident of sales boost amid recovery in luxury market

Retailer Watches of Switzerland has said it is confident of boosting sales and profitability over the full year as the luxury market for watches and jewellery continues to recover.

The UK’s biggest seller of Rolex and Omega watches – which has 221 showrooms across the UK, US and Europe – said trading in the first 18 weeks of its new financial year was in line with expectations.

Shares jumped by more than 8% in morning trading on Tuesday as the firm confirmed it remains on track for sales to grow by up to 12% to around £1.73 billion over 2024-25, and for an improvement in profit margins, as guided for recently.

We have seen continued stabilisation of the UK market in both luxury watches and jewellery following a period of challenging macroeconomic conditions in the prior financial year

Watches of Switzerland (WoS) said: “Over the period, we have seen continued stabilisation of the UK market in both luxury watches and jewellery following a period of challenging macroeconomic conditions in the prior financial year.”

The group’s profit plunged 40% to £92 million in the year to April 28, but said in June that it was starting to see signs of an improvement in trading as consumer confidence rebuilds.

Demand was hit in recent years as cost-of-living pressures knocked discretionary spending on luxury goods.

In its latest update, WoS said: “Based on current trading, confidence of supply in both markets, increased certainty on the timing of key showroom projects, and visibility of new product launches, we have confidence in delivering our full-year 2024-25 guidance as set out at the 2023-24 results.”

WoS is also expanding significantly into the US market, which it hopes will soon make up half of all group sales.

It is integrating its recent Robert Coin acquisition in the US while increasing showroom stock levels in America and looking to open new stores in the country.

We intend to grow and develop the Roberto Coin brand and are actively negotiating new mono-brand boutiques in the US, alongside concession models with department store partners

“We intend to grow and develop the Roberto Coin brand and are actively negotiating new mono-brand boutiques in the US, alongside concession models with department store partners,” it said.

Growth in the US will be weighted towards the second half of 2025-25, it added.

Luxury branded jewellery has also “performed well” worldwide, the company said, while it is looking to open its new Manchester jewellery boutique in April next year as the exclusive retail partner for a number of luxury jewellery brands outside of London.