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Watches of Switzerland Group PLC on Tuesday hailed growth opportunities in the UK, US and Europe as it reported an improved second-quarter, despite a ‘difficult consumer environment’.
The Leicester-based retailer of Swiss watches said revenue in the second-quarter to October 29, rose around 1.3% to £379 million from £374 million.
It said luxury watch demand ‘remains robust’. For the full half-year, revenue was down around 0.5% year-on-year to £761 million.
Notably, revenue in the US rose 4% at reported rates year-on-year to £165 million, while UK and Europe revenue was in line with a year prior at £214 million.
For the current financial year 2024 ending April 30, the company still predicted full-year constant currency revenue growth of 8% to 11%.
For financial 2015 to 2023, the company’s compound annual growth rate for revenue was 19%, with adjusted earnings before interest and tax CAGR up 44%.
Between financial 2023 and financial 2028, the company targets sales to more than double from its financial 2023 base of £1.54 billion adding that UK and US growth was ahead of market. It aims for US revenue CAGR growth of 20% to 25% until financial 2028, UK revenue CAGR growth of 8% to 10%. Further, it anticipates Europe to be 4% to 6% of group sales in financial 2028.
Chief Executive Officer Brian Duffy said: ‘Today’s long range plan demonstrates our confidence in more than doubling our sales and profits from FY23 to FY28, aiming to surpass the milestone of £3 billion in revenue whilst driving operational leverage and accelerating new showroom projects and mergers & acquisitions activity.’
Watches of Switzerland shares rose 7.9% to fr.560.00 each on Tuesday morning in London.
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