TIDMWOSG
RNS Number : 9337N
Watches of Switzerland Group PLC
04 February 2021
Watches of Switzerland Group PLC
Q3 FY21 Trading
for the 13 weeks (Q3) and 39 weeks (9M) to 24 January 2021
Continued strong growth in the US and robust UK ecommerce
performance
Full year guidance maintained despite UK store closures
Watches of Switzerland Group PLC ("the Group") today provides
the following update relating to the 13 and the 39 weeks ending 24
January 2021.
Q3 trading remained strong despite extended period of UK store
closures due to COVID-19
-- Group revenue GBP272.6 million, +6.6% in constant currency,
+5.7% in reported terms vs last year
o Leading multi-channel business model advanced, with
significant further development of the mono-brand network,
ecommerce, customer relationship management ("CRM") and
clienteling, digital marketing
o Luxury watch sales continue to drive performance and in the
first nine months of FY21 represent 86% of Group revenue (9M FY20:
84%), with no disruption to supply experienced
o Higher conversion continues to more than offset lower traffic
across both the UK and US
-- UK revenue GBP186.1 million, +1.5% vs last year
o Domestic sales remain strong and continue to offset lower
tourist and airport business (6.6% of Group revenue (Q3 FY20:
22.2%)
o Very strong ecommerce sales +121.1% vs last year, with newly
launched luxury concierge and collect service delivering robust
initial results and helping to offset the impact of store
closures
o UK stores traded 37% of potential trading hours reflecting
eight weeks of national lockdown
o No disruption to supply experienced from Brexit during the
initial transition period
-- US revenue GBP86.5 million, +19.2% in constant currency,
+16.0% in reported terms vs last year
o Successful launch of mono-brand network with the opening of
eight boutiques (two OMEGA, three TAG Heuer, three Breitling),
despite pandemic-related challenges
o Mayors stores in Florida and Georgia and Watches of
Switzerland stores in New York continue to see strong momentum
whilst trends in Las Vegas stores moderated, due to lower domestic
tourism
o CRM and clientelling continue to play an important role in
driving business performance
o Ecommerce delivering according to plan following recent
launch
Outlook
-- The Group maintains its guidance for FY21 despite UK market
conditions having worsened since announcing H1 FY21 results on 17
December 2020, with the national lockdown introduced in England on
26 December 2020
-- The Group has assumed a continued high level of uncertainty
in the UK where stores are not expected to reopen until late March
2021 at the earliest; no impact is assumed from any lockdown on US
retail activities and on production in Switzerland
-- Continued development of the mono-brand channel with five new boutiques to open in the UK:
o Two mono-brand boutiques in Cardiff are expected to open
immediately following the current lockdown (TAG Heuer,
Breitling)
o Three mono-brand boutiques (OMEGA, TAG Heuer, Breitling) are
planned to open in Plymouth (Summer 2021)
Brian Duffy, Chief Executive Officer, said:
"We delivered another strong performance, driven by continued
strong growth in the US and a surge in UK online sales, which
mitigated the significant headwinds, the extended period of store
closures and the continued very low level of international business
in the UK.
We continue to provide an exceptional customer service during
these unusual circumstances, making further enhancements to our
customer relationship management, ecommerce 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. The experience of prior lockdowns in the UK 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 UK was removed from 1
January 2021. We continue to support all efforts to have the UK
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 UK 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 UK and become a leader in the US luxury watch market."
Q3 FY21 and 9M FY21 Revenue Performance by Geography
Q3 9M
---------------
13 weeks 13 weeks Constant 39 weeks 39 weeks Constant
(GBPm) to to YoY currency to to YoY currency
24 Jan 26 Jan variance YoY variance 24 Jan 26 Jan variance YoY variance
2021 2020 % % 2021 2020 % %
--------- --------- ---------- ---------------- --------- --------- ---------- ---------------
UK 186.1 183.3 1.5% 1.5% 480.2 500.9 (4.1)% (4.1)%
--------- --------- ---------- ---------------- --------- --------- ---------- ---------------
US 86.5 74.6 16.0% 19.2% 206.6 185.7 11.3% 14.3%
--------- --------- ---------- ---------------- --------- --------- ---------- ---------------
Group Revenue 272.6 257.9 5.7% 6.6% 686.8 686.6 0.0% 0.9%
--------- --------- ---------- ---------------- --------- --------- ---------- ---------------
Q3 FY21 Revenue Performance by Category
Q3 9M
------------------
13 weeks 13 weeks 39 weeks 39 weeks
to to YoY to to YoY
(GBPm) 24 Jan 26 Jan variance 24 Jan 26 Jan variance
2021 2020 % 2021 2020 %
--------- --------- ---------- --------- --------- ----------
Luxury watches 231.3 209.8 10.2% 593.4 575.3 3.1%
--------- --------- ---------- --------- --------- ----------
Luxury jewellery 22.2 27.8 (20.1)% 48.5 59.3 (18.2)%
--------- --------- ---------- --------- --------- ----------
Other 19.1 20.3 (5.9)% 44.9 52.0 (13.7)%
--------- --------- ---------- --------- --------- ----------
Group Revenue 272.6 257.9 5.7% 686.8 686.6 0.0%
--------- --------- ---------- --------- --------- ----------
Q3 FY21 % Total Potential Traded Hours
Q3
-------
UK 37%
-----
US 78%
-----
Group 50%
-----
Conference call
A webcast conference call for analysts and investors will be
held at 9.00am (UK time) today. To join the call, please use the
following details:
Dial-in: +44 20 3936 2999
Conference access code: 127487
Contacts
The Watches of Switzerland Group
Anders Romberg, CFO +44 (0) 116 2817 401
Allegra Perry, Investor Relations +44 7767 100603
investor.relations@thewosgroup.com
Headland
Lucy Legh / Rob Walker +44 (0) 20 3805 4822
wos@headlandconsultancy.com
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; Watches of Switzerland (UK and US), Mappin
& Webb (UK), Goldsmiths (UK) and Mayors (US), with
complementary jewellery offering.
As at 24 January 2021, the Watches of Switzerland Group has 146
core stores across the UK and US (which includes 35 dedicated
mono-brand stores in these two markets in partnership with Rolex,
TAG Heuer, OMEGA, Breitling, Audemars Piguet, Tudor and FOPE) 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
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