Watches of Switzerland Group PLC on Tuesday welcomed growth opportunities in the United Kingdom, the United States and Europe by announcing an improvement in its second quarter, despite a “challenging consumer environment”.
The Leicester-based Swiss watch retailer said revenue for the second quarter to October 29 increased by around 1.3%, from £374 million to £379 million.
He said demand for luxury watches “remains robust.” For the full half year, turnover was down around 0.5% on the previous year, to £761 million.
Notably, US revenue increased 4% on a reported rate from the previous year to £165 million, while UK and European revenue was in line to that of the previous year, at £214 million.
For the current 2024 financial year, which ends on April 30, the company still expects constant currency revenue growth of 8% to 11% for the full year.
For fiscal years 2015 to 2023, the Company’s compound annual growth rate of revenue is 19%, and the compound annual growth rate of adjusted earnings before interest and taxes is 44%.
Between FY 2023 and FY 2028, the company aims to more than double sales from FY 2023’s base of £1.54 billion, adding that growth in the UK and United States was higher than the market. It targets average annual U.S. revenue growth of 20-25% through fiscal 2028, and average annual U.K. revenue growth of 8-10%. In addition, it predicts that Europe will represent 4 to 6% of the group’s sales in 2028.
Chief Executive Brian Duffy said: “The long-term plan presented today demonstrates our confidence in our ability to more than double our sales and profits between FY23 and FY28, aiming to surpass the £3 billion turnover mark while boosting operational leverage and accelerating new showroom projects and M&A activity.”
Watches of Switzerland shares rose 7.9% to CHF560.00 each on Tuesday morning in London.
This article is originally published on zonebourse.com
