Watches of Switzerland Group Plc shares soared after sturdy gross sales within the US helped the watch retailer report higher outcomes than traders had feared.
The highest vendor of Rolex watches within the UK noticed US gross sales soar 14% in its fiscal fourth quarter. That helped whole gross sales rise 3% — greater than analysts anticipated — to £380 million ($482 million) within the interval ended April 28.
The shares rose as a lot as 19% in London, the largest intraday transfer since November. They’ve greater than halved in 2024 on considerations it might lose market share after Rolex purchased rival watch retailer Bucherer AG, marking the highest Swiss model’s first vital transfer into promoting its personal merchandise.
“Gross sales within the US had been actually sturdy,” Chief Government Officer Brian Duffy mentioned in an interview Thursday. “As we’ve mentioned all alongside, it’s an underdeveloped market.”
The corporate mentioned gross sales of used watches, together with Rolex fashions underneath the Swiss watchmaking big’s ‘licensed pre-owned’ program, doubled within the interval from the prior 12 months. Gross sales of branded jewellery had been additionally stronger than anticipated as demand rebounded, Duffy mentioned.
“Buyers ought to cheer extra resilient than feared fourth quarter gross sales,” Jefferies analyst James Grzinic wrote in a observe, citing each ends in the UK and US.
Watches of Switzerland warned earlier this 12 months that gross sales and revenue can be weaker than anticipated because it wasn’t allotted as many gold and different treasured steel watches from Rolex and as UK customers turned extra cautious.
UK customers selected to spend their cash on journey and hospitality as an alternative so demand for costlier watches dropped, Duffy mentioned.
The corporate reiterated its long-term goal of greater than doubling gross sales and earnings earlier than curiosity and taxes by 2028, and mentioned it expects gross sales of £1.67 billion to £1.73 billion in 2025. Analysts had been anticipating £1.65 billion.
