Watches of Switzerland lifts FY revenue guidance as H1 sales jump

Watches of Switzerland lifted its full-year revenue guidance on Wednesday to reflect forex movements, as it posted a surge in first-half sales.

In the 26 weeks to 30 October, group revenue rose 31% on a reported basis to £765m. In the UK and Europe, revenues grew 8% to £454m, but the US was the standout performer, with sales there up 86% to £311m.

Sales of luxury watches were ahead 31% during the half at £667m, representing 87% of revenue, with growth driven by increases in average selling price and volume. Meanwhile, luxury jewellery sales rose 38% to £56m.

To reflect movements in foreign exchange, Watches of Switzerland lifted its FY23 revenue guidance to between £1.50bn and £1.55bn from previous guidance of between £1.45bn and £1.50bn. It also upped its guidance for adjusted earnings before interest and tax to between £163m and £175m, from £157m to £169m.

The company said: "While we continue to monitor the wider macroeconomic environment, we believe that the strength of the luxury watch and jewellery categories, the unique supply/demand dynamics of luxury watches and client registration lists, our portfolio of leading brand partnerships, and the success and agility of our model will continue to support long term sustainable sales growth."