Sales of prestige watch brands such as Rolex, TAG Heuer, Breitling and Omega have shot up according to UK’s largest luxury watch retailer.
On the same day that the cost of living crisis intensified with inflation hitting 9 per cent – a 40 year high – the Watches of Switzerland group said it was seeing record sales and profits.
The Leicestershire-headquartered brand, which has 171 showrooms including Mappin & Webb and Goldsmiths in the UK, and Mayors and Betteridge in the US, said there was no sign of demand slowing.
Chief executive Brian Duffy said global sales for the year to May 1 were up 40 per cent at £1.24 billion.
For the most recent three-a-bit months they were up an even better 48 per cent, with demand for luxury watches in both the UK and US “consistently exceeding supply”.
Despite the gloomy global economic outlook the business now expects sales to reach between £1.45 and £1.5 billion over the next year.
It is already planning a new Watches of Switzerland flagship showroom in the vast new American Dream shopping and entertainment complex in New Jersey, as well as a showroom in Battersea, London.
It is also continuing the roll-out of its Goldsmiths Luxury showroom format and launching a European presence with six single watch brand boutiques in Sweden, Denmark and the Republic of Ireland.
Mr Duffy called it an outstanding year for the group.
He said: “We have delivered another record year of revenue and profitability as we continue to progress our long range plan. Our teams have again excelled and done great work.
“We delivered an outstanding performance in both the US and UK, supported by broad-based sales growth across our portfolio of world leading partner brands and driven by domestic clientele.
“We were also delighted to announce our forthcoming entry into the European market, which will provide our group with further growth opportunities and geographic diversification.
“The luxury watch and jewellery markets are dynamic and our group investment-led model continues to gain positive momentum.
“Consumer desire for “Super High Demand” brands (Rolex, Patek Philippe and Audemars Piguet) continues to exceed supply and other luxury watch brands are enjoying exceptionally strong demand and sales. Luxury jewellery demand is also very positive.
“Looking ahead, our FY23 guidance reflects our confidence in our markets and business model.
“We enter FY23 with visibility of product supply for Super High Demand brands for the remainder of the 2022 calendar year and an exciting programme of new products and marketing from other brands. We have a strong pipeline of showroom projects, and we expect an ongoing recovery in footfall and airport traffic.
“Our focus will be on continuing to capitalise on the momentum we have built to deliver value for all our stakeholders.”
Today’s trading update said the business gave staff 50 free shares a few months ago – currently worth almost £500 – and launched an employee share save scheme.
