Watches of Switzerland has achieved a record-breaking revenue of £1.8bn, fueled by surging demand for luxury timepieces in the United States. The UK's largest luxury watch retailer reported a 13% increase in overall revenue for the year to May, with its US market alone contributing a 24% rise to £1.2bn.
US Market Drives Growth
The FTSE 250 company faced challenges from erratic US tariff policies over the past 18 months but capitalized on thriving American demand. The US is now the world's largest and fastest-growing luxury watch market, according to the firm. Watches of Switzerland achieved 25% growth in its US retail segment, while its Italian luxury jewellery brand Roberto Coin saw revenue jump 22%.
Revenue Breakdown
The US became the company's biggest market, with revenue soaring to £927m. In the UK, revenue grew by 5% to £901m, despite consumer confidence dropping to a two-year low. Chief executive Brian Duffy called the US performance a 'major milestone' achieved in just over eight years since entering the market. He added that UK performance improved despite a challenging macroeconomic backdrop, with resilient demand for luxury watches and jewellery.
Resilience Amid Global Conflicts
While some luxury giants have been hurt by a drop in tourism due to the Iran war, Watches of Switzerland said it is not affected, citing minimal exposure to tourist consumers and the Middle East market. The company recently acquired Texas-based jeweller Deutsch & Deutsch, which generated £16m in revenue from its four locations since the takeover. The deal increased the firm's net debt to £57m.
Founded in 1924 by Maurice Lane on Ludgate Hill in London, Watches of Switzerland continues to expand its presence in the luxury watch market.
