TIDMWOSG
RNS Number : 1669H
Watches of Switzerland Group PLC
23 March 2020
Watches of Switzerland Group PLC
COVID-19 Update
Watches of Switzerland Group PLC ("the Group") today provides
the following business update in light of the ongoing and rapidly
evolving situation regarding COVID-19.
Current trading and FY20 guidance
For the 7 weeks to 15 March 2020, Group revenue increased ahead
of expectations, up 16.8% relative to the prior year and
Like-for-Like (LfL) sales increased 12.0% relative to the prior
year. As a result of the COVID-19 outbreak, during this period, the
Group's travel and tourism business were adversely impacted by
reduced footfall. This impacted the Group's trading in stores
located within the airports, in London, and in Las Vegas. However,
the Group was able to offset the impact through higher sales to
domestic customers both in the UK and the US.
However, in light of the accelerated containment measures
relating to the COVID-19 outbreak adopted by governments, the
Group's store portfolio has been closed in the US as of 19 March
2020 and will be closed in the UK as of 23 March 2020. As a result,
the Group currently expects total revenue for the year to 26 April
2020 to be in the range of GBP809 million to GBP812 million.
Given the current environment, the Group has taken steps to
eliminate discretionary expenditure, reduce working capital and
where possible, delay capital projects. Government measures
announced of business rates suspension, employee cost support and
tax payment deferrals, are expected to have a positive impact on
cash planning. The Group has taken steps to ensure the continuity
of the ecommerce proposition, with online operations expected to be
continued as normal.
Outlook
The Group has a strong balance sheet (1.2x adjusted net
debt/EBITDA as at 15 March 2020) and significant financial headroom
and liquidity. These facilities and the actions implemented would
enable the Group to manage through a prolonged period of store
closures.
The Group operates with a high level of variable and semi
variable cost. Government measures on rates and employee costs are
expected to further reduce the proportion of fixed costs.
Brian Duffy, Chief Executive Officer said:
"Our priority is the health and wellbeing of our colleagues and
customers during these unprecedented times. We are taking the
necessary steps to mitigate and minimise the impact of this crisis
on our business.
We are anticipating a continuation of the store closures into
our new financial year which begins on 27 April 2020. We remain
confident in the strong fundamentals that underpin the luxury watch
category including its great value preservation. Demand remains
strong and we anticipate that this will be the case when the market
returns to more normal conditions.
Longer term, we are well positioned to deliver on our plans to
leverage our leading position in the UK and become a leader in the
US luxury watch market.
I would like to extend my respect and gratitude to our teams in
the UK and in the US who, as ever, have been resilient, resourceful
and positive throughout this period."
Contacts
The Watches of Switzerland Group
Anders Romberg, CFO
Allegra Perry, Investor Relations +44 (0) 116 2817 401
investor.relations@thewosgroup.com +44 (0) 20 7317 4600
Headland
Lucy Legh / Rob Walker
wos@headlandconsultancy.com +44 (0) 20 3805 4822
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 127 core showrooms across
the UK and US (which includes 22 dedicated mono-brand stores in
these two markets 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
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.
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
UPDQXLBLBXLEBBQ
(END) Dow Jones Newswires
March 23, 2020 03:00 ET (07:00 GMT)
Watches Of Switzerland (LSE:WOSG)
Historical Stock Chart
From Apr 2024 to May 2024
Watches Of Switzerland (LSE:WOSG)
Historical Stock Chart
From May 2023 to May 2024