The Watches of Switzerland Group, formerly known as Aurum Holdings, has increased global revenue by 29% to £197 million in the second quarter of its 2019 financial year, ended October 28.
Sales for the six months to October are up 30%, showing the impact of the Group’s acquisition of Mayors in the United States in October 2018.
Like-for-like same store sales were up 10.4% at constant exchange rates in Q2. UK turnover rose by 5.2%, while US sales increase by 12.8%.
Chief executive officer of The Watches of Switzerland Group, Brian Duffy, says of the results: “I am delighted to announce strong second quarter results. Our excellent sales growth — both in-store and online — and increasing customer conversion and average selling price is testament to our proven strategy. As the leader in the UK luxury watch and jewellery market, and in the growing US market, we continue to transform the sector and grow the market.”
Luxury watches have become critical to growth for the Group, with the quarterly report highlighting the impact this category has had on business.
During Q2 UK luxury watch sales rose by 10.2%, despite lower football and tourist numbers in the country. US luxury watch sales rose 16.8% for the same period, and ecommerce sales recorded a 32.4% lift.
The volume end of the market remains challenging for fashion and classic jewellery and watches selling for under £500. The group saw sales drop by 23.2% in the sector, which now accounts for only 6.7% of total sales; down from 8.3% a year ago.
Over the last 18 months The Watches of Switzerland Group has made a move to increasingly focus on higher end jewellery and watches.
As part of this, the Group sold six of its Goldsmiths stores to TH Baker, and has heavily invested in the development of its remaining Goldsmiths network – giving boutiques luxury makeovers, and placing more higher end products windows.