Watches of Switzerland Group (LON: WOSG) saw profits decline in fiscal year 2024 (FY24) due to challenging market conditions. However, the company remains confident in its future, citing strong growth in the US and strategic acquisitions as reasons for optimism.
Group revenue remained flat at £1.538 billion compared to FY23. Luxury watches, which account for 87% of the company’s revenue, grew 3% in constant currency, driven by the US market. Luxury jewellery sales declined 13% due to reduced consumer confidence, but the company highlights the strong performance of its luxury branded jewellery portfolio.
Watches of Switzerland CEO Brian Duffy pointed to the company’s “proven, differentiated business model” as a reason for its success in a challenging market. He highlighted the company’s market share gains in both the US and UK and its strategic acquisitions, including the recent purchase of Roberto Coin Inc.
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Looking ahead, the company is cautiously optimistic about FY25. It expects revenue to grow 9-12% at constant currency, coming in between £1.67 billion and £1.73 billion, and an expansion of its adjusted EBIT margin. This guidance factors in the contribution of the Ernest Jones acquisition and the Roberto Coin Inc. purchase.
Watches of Switzerland sees “unique growth opportunities” in the pre-owned watch market, with sales doubling year-on-year in Q4 FY24. The company also plans to continue its aggressive showroom development program, including the opening of a flagship Rolex boutique on London’s Old Bond Street.
Despite the profit decline in FY24, Watches of Switzerland remains confident in its long-term prospects. The company’s strong US performance, strategic acquisitions, and focus on the pre-owned market are believed to position it for future growth.
“Our strategic momentum underpins our confidence in our FY25 guidance and Long Range Plan objectives of doubling sales and profit by 2028, capitalising on our leading market positions and the unique growth opportunities ahead,” said Duffy.
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