TIDMWOSG
RNS Number : 7928I
Watches of Switzerland Group PLC
13 August 2019
Watches of Switzerland Group plc trading statement for Q1
FY20
(three months to 28 July 2019)
Continued Strong Momentum with standout luxury watch sales
growth
We are pleased to report a strong sales performance for the
Watches of Switzerland Group in our first quarter as a listed
company.
Highlights
-- Total revenue of GBP209.4m, +17.8% on prior year, driven by robust UK and US performance
-- Strong Lfl growth of 10.8%; with the UK (excluding Online)
+11.5% , the US +8.7% and Online (UK) +14.5%
-- We commenced the Mayors investment programme implementing new
showroom formats including a complete refurbishment of our Miami
International mall showroom, with relocations of two other Mayors
showrooms, Merrick Park Miami and Lenox Atlanta. The new Mayors
design has been very positively received by the brand partners, our
teams and most importantly our clients
-- The new Lenox Mayors showroom includes our first ever
Audemars Piguet boutique and a Rolex boutique together with a new
Mayors showroom
-- We opened a showroom in the new Wynn Boston resort and in the
UK we relocated and refurbished our Brighton showroom
GBPm Three months to Three months to Growth
28 July 2019 29 July 2018
Group Revenue GBP209.4m GBP177.7m 17.8% (16.5% Constant
currency)
UK Revenue GBP155.0m GBP138.6m 11.8%
US Revenue GBP54.4m GBP39.1m 39.0% (32.4% Constant
currency)
Group LfL 10.8% 7.3%
UK LfL (exc
Online) 11.5% 6.0%
US LfL 8.7% 11.9%
Consistent with recent trends, Luxury Watches has become a
larger part of our overall business, with Luxury Jewellery, and
particularly Fashion & Classic, reducing relatively.
The decline in Luxury Jewellery sales vs the same quarter last
year was largely driven by the closure/disposal of 12 non-core
stores.
GBPm Three months to 28 July 2019 Three months to 29 July 2018 Growth
Luxury Watches GBP177.4m GBP144.4m 22.8%
Luxury Jewellery GBP16.2m GBP17.0m (4.6)%
Fashion & Classic GBP7.4m GBP8.3m (11.3)%
Services & Other GBP8.4m GBP8.0m 5.2%
Outlook
While there are some moving parts, overall our capital project
programme is broadly in line with previous guidance. The luxury
watch markets in the UK and US remain strong. We do however note
the ongoing wider macro-economic uncertainty in the UK and US.
Nevertheless, we are confident that the Group remains
well-positioned to deliver on its strategic aims and meet the
Board's expectations for FY20, as stated in our FY19 results.
Brian Duffy, Chief Executive Officer, said:
"Our first quarter as a listed business saw continued strong
underlying growth in both the UK and US supported by the expansion
of our showroom portfolio.
Our focus on store upgrades and store customer service,
supported by increasing digital and social marketing and closer
collaboration with brand partners, is working.
We have made good progress with our recently commenced Mayors
investment programme, implementing new showroom formats and are
very pleased to open the first ever Audemars Piguet mono-brand
boutique in our new Lenox store in Atlanta."
Conference Call
A conference call for analysts and investors will be held at
9.00am today. To join the call, please use the following dial
in:
Standard International Access +44(0) 20 3003 2666
UK Toll Free 0808 109 0700
Quoting Password: Watches of Switzerland
Contacts for this release
The Watches of Switzerland Group
Anders Romberg, CFO
Telephone: +44 (0) 116 2817 401
Email: investor.relations@thewosgroup.com
Finsbury
Charles O'Brien
Telephone: + 44 (0) 20 7251 3801
Email: WoS@finsbury.com
Notes
1. Financial data is unaudited
2. Like-for-Like (Lfl) sales growth is the percentage increase
in sales from showrooms that have been trading continuously from
the same selling space for at least one year and are measured in
local currency. Lfl excludes showrooms which have undergone
refurbishment work during the period they closed for
refurbishment.
3. Lfl for Q1 2018 for US business is pro-forma as part of the
period was pre-acquisition for the Mayors and Wynn showrooms.
About the Watches of Switzerland Group
The Watches of Switzerland Group is the UK's largest luxury
watch retailer, operating in both the UK and US, comprising four
prestigious brands; Goldsmiths (UK), Mappin & Webb (UK),
Watches of Switzerland (UK and US) and Mayors (US), with
complementary jewellery offering.
The Watches of Switzerland Group has 129 core showrooms across
the UK and US (which includes 20 dedicated mono-brand stores in
partnership with Rolex, TAG Heuer, Omega and Breitling) and has a
leading presence in Heathrow Airport with representation in
Terminals 2, 3, 4 and 5 as well as five online transactional
websites.
The Watches of Switzerland Group is proud to be the UK's largest
retailer for Rolex, Cartier, Omega, TAG Heuer and Breitling
watches.
Mappin & Webb holds Royal warrants as goldsmiths,
silversmiths and jeweller to Her Majesty The Queen and silversmiths
to His Royal Highness The Prince of Wales. The Mappin & Webb
master jeweller has been Crown Jeweller, custodian of the Crown
Jewels of Her Majesty The Queen since 2012.
Visit https://www.thewosgroupplc.com
Disclaimer
This trading statement does not constitute an invitation to
underwrite, subscribe for, or otherwise acquire or dispose of any
Watches of Switzerland Group Plc shares or other securities nor
should it form the basis of or be relied on in connection with any
contract or commitment whatsoever. It does not constitute a
recommendation regarding any securities. Past performance,
including the price at which the Company's securities have been
bought or sold in the past, is no guide to future performance and
persons needing advice should consult an independent financial
adviser.
Certain statements in this trading statement constitute
forward-looking statements. Any statement in this document that is
not a statement of historical fact including, without limitation,
those regarding the Company's future plans and expectations,
operations, financial performance, financial condition and business
is a forward-looking statement. Such forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially. These risks and uncertainties include, among
other factors, changing economic, financial, business or other
market conditions. These and other factors could adversely affect
the outcome and financial effects of the plans and events described
in this statement. As a result you are cautioned not to place
reliance on such forward-looking statements. Nothing in this
statement should be construed as a profit forecast.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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