Strong US demand helps Watches of Switzerland clock up revenue

Although luxury watch revenues saw a slight dip, mainly because of one-time rises in showroom stocks, the company reported an increase in demand from the US.

Watches of Switzerland Group has revealed its first half financial year 2025 (H1 FY25) results, for the 26 weeks ended 27 October 2024.

Group revenue for H1 FY25 came in at £785m (€948.61m), an increase of 3% from the same period last year. Robust performance in the US balancing out a slight dip in the UK.

However, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to £87m (€105.12m), a drop of 7% from the same period last year.

Statutory operating profit also plunged 23%, while statutory profit before tax fell 39%.

Luxury watch revenues dropped 3%, mainly because of one-time rises in showroom stocks in the first quarter of the financial year which mainly affected the US.

Group luxury jewellery revenue excluding Roberto Coin dropped 6%, pulled down by US luxury jewellery revenues, as the country’s commodity bridal category struggled, with inventory from the previous year being cleared during this time as well. However, the UK bucked this trend, with luxury jewellery revenue rising 4%.

Luxury watches’ share of group revenue also fell, primarily because of Roberto Coin boosting jewellery stocks.

However, core brands continued to see robust demand, with the vintage and Certified Pre-Owned divisions doing particularly well.

Watches of Switzerland sells a number of luxury watch brands such as Rolex, Patek Philippe and Breitling.

Brian Duffy, the chief executive officer (CEO) of Watches of Switzerland, said of the H1 FY25 earnings report on the company’s website: “Our newly acquired Roberto Coin business in North America has traded strongly since acquisition and is now making a good contribution to our Group.

“Integration is progressing well, and growth plans are underway. We are also encouraged by the performance of the Rolex Certified Pre-Owned programme and the sustained growth in our overall pre-owned business.

“Additionally, we acquired Hodinkee, a leading global digital platform for luxury watch enthusiasts, further strengthening our online sector leadership. Q3 trading has started encouragingly, and we have continued with our showroom transformation programme.”

Watches of Switzerland ties up with independent watchmarkers

To celebrate its 100-year anniversary, Watches of Switzerland has collaborated with independent watchmakers Craig and Rebecca Struthers, for a Centenary Piece Unique, which focuses on combining artistry and tradition. The company has also launched other pieces to celebrate this milestone anniversary, such as the Serpenti Seduttori watch, in collaboration with Bulgari.

Craig Bolton, the president of the Watches of Switzerland Group UK and Europe, said in a press release on the company’s website: “Having the opportunity to create a Watches of Switzerland timepiece to commemorate our 100-year anniversary is a new milestone for the business and adds to the legacy of Watches of Switzerland. We are honoured that esteemed independent watchmakers Craig and Rebecca Struthers were able to create this unique piece for the business.

“They have created a timepiece that reflects our shared values to preserve the rich heritage of watchmaking, unifying traditional techniques with modern innovation. One lucky client will be able to purchase a piece of our history, courtesy of two of the best British watchmakers of our generation.”