Watches of Switzerland back on track, US strong, announces Yurman and Repossi UK deals

Watches of Switzerland Group’s half-year results aren’t due until December but on Tuesday the company delivered a trading update for the first 18 weeks of its financial year and seems to be getting back on a track after an earlier downturn for the once-seemingly-unstoppable retailer.

It said that trading has been in line with its expectations and it’s on target to deliver its FY25 guidance as it makes progress against its Long Range Plan. 

Demand for its “key luxury brands, particularly products on Registration of Interest lists, remains strong in both the UK and US markets, outstripping supply, with consistent additions and conversions”.  

And in the 18-week period in question it has seen “continued stabilisation” of the UK market in both luxury watches and jewellery “following a period of challenging macroeconomic conditions in the prior financial year”. 

In this first half, it’s increasing showroom stock levels in the US “to enhance displays and client experience” and expects US growth to be second-half-weighted.

Importantly, following the acquisition in May, the integration of Roberto Coin Inc is “progressing to plan”. The company said it has “received positive feedback from the network of retail partners, and sell-out data is encouraging”. And it promised “exciting growth plans for the US market”. 

It aims to “grow and develop the Roberto Coin brand and [we] are actively negotiating new monobrand boutiques in the US, alongside concession models with department store partners”.

Importantly too, luxury branded jewellery has performed well globally, and the company announced the exclusive launches of David Yurman and Repossi in the UK. 

“We have made good progress on our Manchester luxury jewellery boutique, and it is anticipated this will open in April 2025. This boutique will be the exclusive retail partner for a number of luxury jewellery brands outside of London,” it added.

The group has continued its showroom development programme, with the opening of Mappin & Webb Edinburgh and the new 2,000 sq ft Patek Philippe room in Betteridge Greenwich, Connecticut. 

And it has made good progress on key projects due to open in H2 such as the new flagship Rolex on Old Bond Street, London due next March; the Audemars Piguet Townhouse, Manchester ready in Q4 FY25; the conversion of Mayors Lenox, Atlanta to a Rolex in Q3; and the expansion of Watches of Switzerland Plano, Texas to include a new Rolex agency, also in Q3.