Watches of Switzerland has seen its profits soar in the three months ending 29 January with the group crediting a demand for luxury watches for the sales boost.
The UK-based retailer, which stocks Swiss watches such as Rolex and Tag Heuer, brought in profits of £407m in its third quarter, up 17 per cent from £348m in the same period last year.
In this time, sales of its luxury watches also jumped 22 per cent to £340m representing 84 per cent of its revenue – up slightly from 80 per cent in Q3 2022.
The brand also saw profits in its luxury jewellery range jump £41m up slightly at two per cent.
Despite a challenging economic outlook, chief of the group Brian Duffy told City AM that a demand for luxury items remains.
“We call it rational indulgence, consumers can really convince themselves that they are spending money wisely and buying a luxury watch or a beautiful piece of jewellery is going to preserve value,” he said.
The luxury retailer also performed well across its international market posting US Q3 revenues of £169m up from £125m in the same period last year. “We are looking to expand market share in the US, probably at about 12 per cent,” Duffy said.
Duffy said that since launching in America in 2018 the group has seen a “great response” and told City AM he predicts that the “biggest growth” for the group ahead will be from America.
He said: “The market is very strong in America and within that market, we have a very strong model that’s gaining share.”
Watches of Switzerland operates 131 showrooms in the UK and 40 showrooms in the US.
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