Watches of Switzerland expects sales growth amid luxury market recovery

Watches of Switzerland, the UK's largest retailer of luxury watches, is optimistic about its sales and profitability for the financial year 2024-25. The company reported that trading in the first 18 weeks of the new financial year met expectations, indicating a recovery in the luxury watch and jewellery market. The retailer anticipates sales growth of up to 12%, reaching approximately £1.73 billion, alongside improved profit margins. This positive outlook follows a challenging previous year marked by a 40% drop in profit to £92 million due to decreased consumer spending driven by cost-of-living pressures. The company noted a stabilization in the UK market for luxury goods, which has been bolstered by a rebuilding of consumer confidence. Watches of Switzerland is also expanding its presence in the US market, aiming for it to account for half of its total sales. The integration of the recent Robert Coin acquisition and plans to increase showroom stock levels in the US are part of this strategy. The growth in the US market is expected to be more pronounced in the latter half of the financial year. The company is optimistic about the timing of key showroom projects and new product launches, which are expected to contribute positively to sales. Overall, Watches of Switzerland's confidence in achieving its financial guidance reflects a broader recovery trend in the luxury market, as the company adapts to changing consumer behaviors and market conditions.