TIDMWOSG
RNS Number : 2224B
Watches of Switzerland Group PLC
10 February 2022
Watches of Switzerland Group PLC
Q3 FY22 Trading
for the 13 weeks (Q3 FY22) and 39 weeks (9M FY22) to 30 January
2022
Strong Q3 FY22 trading, outlook now expected to be towards the
top end of guidance
Entrance into the European market securing six mono-brand
boutiques
Watches of Switzerland Group PLC ('the Group') today provides
the following trading update for the 13 and 39 weeks ending 30
January 2022.
-- Q3 FY22 Group revenue GBP348.1 million (Q3 FY21: GBP272.6
million), +27.9% vs Q3 FY21 and +36.5% vs Q3 FY20 (both in constant
currency). YTD Group revenue GBP934.3 million +38.0% vs FY21 and
+39.2% vs FY20 (both in constant currency)
o Q3 FY22 luxury watches +21.0% on last year. Demand for luxury
watches continues to be very strong in both the UK and the US
consistently exceeding supply
o Sales of "Super High Demand" (Rolex, Patek Philippe and
Audemars Piguet) watches reflected the timing of intake in the
quarter. Full year intake continues to be in line with our
expectations
o Growth in other luxury watches (i.e. excluding Rolex, Patek
Philippe and Audemars Piguet) was +111.9% on last year
o Q3 FY22 luxury jewellery +88.4% on last year reflecting a
strong market, continued improvement in ranging and the incremental
growth from the Betteridge acquisition and the opening of our first
Bvlgari boutique
o Q3 FY22 Group ecommerce sales -1.1% on last year when UK
stores were open for four weeks out of thirteen due to COVID-19
lockdowns (+123.1% vs Q3 FY20)
o Group's strategy to expand in Europe progressed, securing six
mono-brand boutiques in Sweden, Denmark and Republic of Ireland.
These boutiques will open in H1 FY23
o Previously committed donation of GBP3.0 million paid to The
Watches of Switzerland Foundation of which GBP1.5 million was
accrued in FY21 and GBP1.5 million in H1 FY22
o The Group granted a free gift of 50 shares to all colleagues
and launched employee share save schemes in the UK and the US to
further incentivise colleagues
-- Q3 FY22 US revenue GBP124.6 million (Q3 FY21: GBP86.5
million), +44.6% vs Q3 FY21 and +72.3% vs Q3 FY20 (both in constant
currency)
o Luxury watch growth of +32.4% on last year, with 214.3% growth
in other luxury watch brands (i.e. excluding Rolex, Patek Philippe
and Audemars Piguet)
o Exceptional luxury jewellery growth of +172.6% on last year,
benefiting from the Betteridge acquisition on 1 December 2021 and
the opening of our first Bvlgari boutique, adjacent to the
refurbished Mayors Aventura, Florida
o Store network further enhanced with:
-- Refurbished Rolex boutique in Wynn Resort, Las Vegas
-- Further progress on our Mayors refurbishment programme with
the reopening of Mayors Millenia, Florida
-- Expansion of the mono-brand boutique channel with the opening
of Breitling Short Hills, New Jersey and Tudor Millenia,
Florida
-- Q3 FY22 UK revenue GBP223.5 million (Q3 FY21: GBP186.1
million), +20.1% vs Q3 FY21 and +22.0% vs Q3 FY20
o UK performance continues to be driven by a thriving domestic
clientele
o Sales driven through our omni-channel approach supported by
increased digital marketing
o Luxury watches +15.2% on last year, with +77.9% growth in
other luxury watch brands (i.e. excluding Rolex, Patek Philippe and
Audemars Piguet)
o Luxury jewellery +55.7% on last year reflecting continued
market demand and continued improvement in ranging
o Continued investment in store network:
-- Roll out of the Goldsmiths Luxury concept to a further five
stores
-- Mono-brand boutique network enhanced with three further TAG
Heuer boutiques (Guildford, Brighton and Southampton) and
refurbishment of Breitling Trafford
-- Refurbishment of Mappin & Webb Regent Street
Outlook
-- Reflecting strong trading in Q3 FY22, margin accretive sales
growth of other luxury watch brands and price increases implemented
by certain brands, the Group now expects full year revenue and
profit to be towards the top end of the upgraded guidance announced
at 9 November 2021. Other guidance remains unchanged
-- Our guidance reflects that we do not expect any significant
change in market conditions in the balance of the fiscal year
-- The Group has an exciting pipeline of confirmed store
projects for the remainder of the fiscal year:
o Mayors Boca Raton, Florida refurbishment
o Opening of new flagship store in Kenwood Towne Center,
Cincinnati, Ohio
o Three new mono-brand boutiques in the UK
-- Furthermore, the Group has committed to the following projects in FY23:
o New flagship store in American Dream, New Jersey
o Watches of Switzerland store in Battersea, London
o Continued roll out of UK Goldsmiths Luxury elevated store
formats
o Further elevation of the Mayors network in Florida
o Expansion of the mono-brand footprint in the UK and US
o Entry into the European market through the opening of six
mono-brand stores in Sweden, Denmark and Republic of Ireland
Brian Duffy, Chief Executive Officer, said:
"I am pleased to report continued strong momentum for our Group
following a successful Christmas trading period. We have delivered
impressive growth in both luxury watches and luxury jewellery in
both the UK and US markets demonstrating the value of our portfolio
of world leading partner brands.
"I am also pleased to report a strong sales performance of the
five stores acquired in the year and a great contribution from our
new colleagues.
"We have announced today our entry into the European market with
mono-brand boutiques agreed in Sweden, Denmark and Republic of
Ireland providing our Group with further geographic diversification
in line with our Long Range Plan.
"Having received its GBP3.0 million donation in the period, The
Watches of Switzerland Foundation has now begun putting the
proceeds towards providing essential support in the communities
where we live and work in the UK and in the US.
"Furthermore, in recognition of our colleagues' hard work and to
ensure they have the opportunity to share in the success we deliver
as a business, we are pleased to have provided all our colleagues
with a gift of 50 free shares and access to employee share save
schemes in the UK and US.
"Strong trading to date, revised pricing by certain brands and
visibility of supply for calendar 2022 all support our expectation
to perform towards the top end of our full year guidance. Demand in
our category continues to outstrip supply and we remain confident
in the future of our business and achieving the goals laid out in
our Long Range Plan."
Q3 FY22 Revenue performance by geography
Q3 FY22 Q3 FY21 Q3 FY22 vs Q3 Q3 FY22 vs Q3
FY21 FY20
----------------
13 weeks 13 weeks 2-year
to to Constant 2-year constant
30 Jan 24 Jan Reported currency reported currency
(GBPmillion) 2022 2021 YoY % YoY % YoY % YoY %
--------- --------- --------- ------------- ---------- ----------
UK 223.5 186.1 +20.1% +20.1% +22.0% +22.0%
--------- --------- --------- ------------- ---------- ----------
US 124.6 86.5 +44.0% +44.6% +67.0% +72.3%
--------- --------- --------- ------------- ---------- ----------
Group Revenue 348.1 272.6 +27.7% +27.9% +35.0% +36.5%
--------- --------- --------- ------------- ---------- ----------
Q3 FY22 and 9M FY22 Revenue performance by category
(reported)
Q3 9M
------------------
13 weeks 13 weeks 39 weeks 39 weeks
to to to to
(GBPmillion) 30 Jan 24 Jan 30 Jan 24 Jan
2022 2021 YoY % 2022 2021 YoY %
--------- --------- ------- --------- --------- -------
Luxury watches 279.8 231.3 +21.0% 788.7 593.4 +32.9%
--------- --------- ------- --------- --------- -------
Luxury jewellery 41.8 22.2 +88.4% 82.5 48.5 +70.2%
--------- --------- ------- --------- --------- -------
Other 26.5 19.1 +38.6% 63.1 44.9 +40.4%
--------- --------- ------- --------- --------- -------
Group Revenue 348.1 272.6 +27.7% 934.3 686.8 +36.0%
--------- --------- ------- --------- --------- -------
YTD FY22 Revenue performance by geography
9M FY22 9M FY21 9M FY22 vs 9M 9M FY22 vs 9M
FY21 FY20
----------------
39 weeks 39 weeks 2-year
to to Constant 2-year constant
30 Jan 24 Jan Reported currency reported currency
(GBPmillion) 2022 2021 YoY % YoY % YoY % YoY %
--------- --------- --------- ----------- ---------- -----------
UK 642.2 480.2 +33.7% +33.7% +28.2% +28.2%
--------- --------- --------- ----------- ---------- -----------
US 292.1 206.6 +41.4% +47.8% +57.4% +69.0%
--------- --------- --------- ----------- ---------- -----------
Group Revenue 934.3 686.8 +36.0% +38.0% +36.1% +39.2%
--------- --------- --------- ----------- ---------- -----------
Q3 FY22 Results Conference call
A conference call for analysts and investors will be held at
9.00am (UK time) today. To access the webcast, please use the
following details:
Conference call: United Kingdom (Local): 020 3936 2999
All other locations: +44 20 3936 2999
Participant access code: 866937
Contacts
The Watches of Switzerland Group
Bill Floydd, Chief Financial Officer +44 (0) 207 317 4600
Caroline Browne, Group Finance Director +44 (0) 116 2817 420
investor.relations@thewosgroup.com
Headland
Lucy Legh / Rob Walker / Joanna Clark
+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 five
prestigious brands; Watches of Switzerland (UK and US), Mappin
& Webb (UK), Goldsmiths (UK), Mayors (US) and Betteridge (US),
with a complementary jewellery offering.
As at 30 January 2022, the Watches of Switzerland Group has 171
stores across the UK and US including 51 dedicated mono-brand
boutiques in partnership with Rolex, TAG Heuer, Breitling, OMEGA,
Tudor, Audemars Piguet, Grand Seiko, Bvlgari and FOPE and has a
leading presence in Heathrow Airport with representation in
Terminals 2, 3, 4 and 5 as well as seven retail 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
Cautionary note regarding forward-looking statements
This announcement has been prepared by Watches of Switzerland
Group PLC (the 'Company'). It includes statements that are, or may
be deemed to be, "forward-looking statements". These
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes",
"estimates", "anticipates", "expects", "intends", "plans", "goal",
"target", "aim", "may", "will", "would", "could" or "should" or, in
each case, their negative or other variations or comparable
terminology. They appear in a number of places throughout this
announcement and the information incorporated by reference into
this announcement and may include statements regarding the
intentions, beliefs or current expectations of the Company
Directors or the Group concerning, amongst other things: (i) future
capital expenditures, expenses, revenues, earnings, synergies,
economic performance, indebtedness, financial condition, dividend
policy and future prospects; (ii) business and management
strategies, the expansion and growth of the Group's business
operations; and (iii) the effects of government regulation and
industry changes on the business of the Company or the Group.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future and may be
beyond the Company's ability to control or predict. Forward-looking
statements are not guarantees of future performance. The Group's
actual results of operations, financial condition, liquidity, and
the development of the industry in which it operates may differ
materially from the impression created by the forward-looking
statements contained in this announcement and/or the information
incorporated by reference into this presentation.
Any forward-looking statements made by or on behalf of the
Company or the Group speak only as of the date they are made and
are based upon the knowledge and information available to the
Directors on the date of this announcement, and are subject to
risks relating to future events, other risks, uncertainties and
assumptions relating to the Company's operations and growth
strategy, and a number of factors that could cause actual results
and developments to differ materially from those expressed or
implied by the forward-looking statements. Undue reliance should
not be placed on any forward-looking statements.
Before making any investment decision in relation to the Company
you should specifically consider the factors identified in this
document, in addition to the risk factors that may affect the
Company or the Group's operations which are described in the Annual
Report and Accounts 2021 in Risk Management and Principal Risks and
Uncertainties.
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