Watches of Switzerland defies cost of living crisis with surging sales

Luxury watch and jewellery sales have surged at Watches of Switzerland, with the retailer shrugging off wider cost-of-living concerns amid “enduring” demand for luxury watches and jewellery.

The London Stock Exchange-listed retailer said its financial performance over the first half of the year had been better than expected.

Revenues rose by 15 per cent to £974 million in the six months to November, compared with the same period last year and at constant currencies.

The US drove much of the growth, with revenues there surging by 22 per cent year on year. In the UK, sales jumped by 9 per cent.

The company hailed a “standout” performance in its showrooms, where luxury jewellery sales soared by 31 per cent.

Sales growth accelerated in flagship boutiques and across many regional cities in the UK, the retailer said.

Watches of Switzerland sells high-end brands such as Rolex, Cartier and Patek Philippe.

It also partners with jewellery brands including Roberto Coin, Goldsmiths, Mappin & Webb, and Mayors.

Chief executive Brian Duffy said the retailer was reporting a “strong” performance “despite an unsettled macroeconomic backdrop”.

“This reflects the strength of our market position, the quality of execution from our teams, and enduring demand for luxury watches and jewellery,” he said.

Adjusted earnings for the company are expected to be between £87 million and £89 million for the first half.

Watches of Switzerland said it was now expecting revenues for the full year to grow at the “upper end” of its previous guidance, between 7 per cent and 10 per cent.

Mark Crouch, market analyst at eToro, said: “Watches of Switzerland is offering a striking reminder that not all consumers are feeling the economic squeeze equally.

“While much of the retail sector wrestles with cautious shoppers and stretched household budgets, demand for luxury watches and jewellery remains remarkably strong, particularly in America.

“For customers willing to spend thousands on a Rolex or an expensive piece of jewellery, the wider cost-of-living crisis appears a distant concern.”