The boss of the Watches of Switzerland has reassured investors that the business has adapted well to lockdown, maintaining strong sales despite weeks of store closures.
Chief executive Brian Duffy said despite its airport shops going into lockdown, a huge drop in wealthy foreign shoppers coming to the 海角视频, and extended high street store closures, sales remained buoyant.
He said online sales for the last three months – including the Christmas period and latest national lockdown – were up 121 per cent year-on-year, while revenues at its US stores were also good.
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Alongside its Watches of Switzerland stores, the business – which has its national headquarters on the Braunstone Frith Industrial Estate just outside Leicester – includes Goldsmiths and Mappin & Webb.
Three years ago it bought US jewellery chain Mayor’s for almost $105 million. Since then it has expanded and opened Watches of Switzerland shops in US tourist destinations and cities including Las Vegas, New York, and the $2.6 billion Encore Boston Harbor Resort.
Mr Duffy said: “We delivered another strong performance, driven by continued strong growth in the US and a surge in 海角视频 online sales, which mitigated the significant headwinds, the extended period of store closures and the continued very low level of international business in the 海角视频.
“We continue to provide an exceptional customer service during these unusual circumstances, making further enhancements to our customer relationship management, e-commerce and clienteling capabilities through the introduction of our luxury concierge and collect service and the launch of our new virtual boutique.
“Our performance is underpinned by the strengths of our leading multi-channel business model and the uniquely attractive qualities of the luxury watch category, where demand continues to outpace supply.
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“The experience of prior lockdowns in the 海角视频 has given our teams the tools to optimise commercial opportunities through online and clienteling, whilst in the US we are driving fantastic conversion levels with continued subdued traffic.
“Tax-free shopping for tourists in the 海角视频 was removed from January 1, 2021. We continue to support all efforts to have the 海角视频 Government review and change this policy.
“Through maintaining consistent investment and adapting with agility to changing conditions, we have shown our strategy is working well, with initial findings suggesting we have gained further market share in luxury watches in the 海角视频 over the last year.
“With a strong plan for continued investment and future growth, we are well positioned to further enhance our leading position in the 海角视频 and become a leader in the US luxury watch market.”
Global revenues were £272.6 for the three months to January 24, up around 6 per cent on the same period a year earlier – pre-Covid-19.
海角视频 sales were up 1.5 per cent year-on-year at £186.1 million, and US sales were up 16 per cent at £86.5 million.
That came despite losing big revenues from the enforced closure of its airport shops and sales to tourists falling off a cliff – accounting for 6.6 per cent of group revenues during the three months, down from around 22.2 per cent.
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海角视频 watch brands such as Rolex, Omega, TAG Heuer and Breitling now accounted for 86 per cent of all sales and rising.
Online 海角视频 sales were “super-strong”, Mr Duffy said, up 121.1 per cent year-on-year, with a new luxury “concierge and collect” service delivering “robust” initial results and helping offset the impact of store closure.
Mr Duffy said 海角视频 stores were shut for two-thirds of the three month period, and hoped its shops would be opening from the end of March – but remained cautious that traffic would be “subdued”.
He believed there was a chance of things getting back to normal by September, even with social distancing measures continuing, and expects 海角视频 stores to be open for 32 weeks of the year.
He said demand for posh watches continued to outstrip supply and there was no threat of production hold-ups at the big watch manufacturers in Switzerland.
He also said the business was planning to open more “mono-brand” stores with five new boutiques to open in the 海角视频 – TAG Heuer and Breitling boutiques in Cardiff, which will open as soon as lockdown ends, and Omega, TAG Heuer and Breitling stores which will to open in Plymouth this summer.
Today Watches of Switzerland has 146 stores across the 海角视频 and US, including 35 dedicated mono-brand stores in partnership with Rolex, TAG Heuer, Omega, Breitling, Audemars Piguet, Tudor and FOPE jewellery and has a big presence in Heathrow Airport Terminals 2, 3, 4 and 5.
It also has five online shops.