Watches of Switzerland returns to sales growth after months of Covid-19 disruption

Strong demand in Britain for Rolexes and rival luxury brands has helped Watches of Switzerland return to sales growth, the retailer has said.

The retailer has seen a significant increase in domestic sales as its UK and US shops reopened from lockdown, and forecast full-year sales growth. It recorded a “strong performance” prior to the pandemic.

The company, which floated at 270p in May 2019, saw shares jump 47p, or more than 17%, to 309p.

Chief executive Brian Duffy said: “The underlying reality is demand has always exceeded supply for some luxury brands.” He added that there are a number of people in the UK on waiting lists for Rolex watches.

Regional store growth partly offset greater declines in London and airport stores which suffered from travel restrictions impacting tourist spend.

Revenues in the 13 weeks to July 26 declined 27.6%, although online sales surged. In July, the first full month when the majority of stores had reopened, sales climbed 7.4%.

In the year to April 26, operating profit rose 6.2% to £48.3 million. Revenue increased 5.9% to £819.3 million, and the company today forecast annual sales could reach between £840 million and £860 million.

The company is behind the Watches of Switzerland, Goldsmiths and Mappin & Webb brands.

Duffy said: “While we began FY21 with our global store portfolio closed due to the pandemic, we were well prepared for the re-opening of our stores during Q1 and trading has exceeded our expectations in both the UK and the US.”