Swiss watches are back on track, and the US is strong, as Y… | kbnmart

Watches of Switzerland’s first-half results won’t be released until December, but the company on Tuesday provided a trading update for the first 18 weeks of its fiscal year and appears to be back on track after an earlier slide for the once-unstoppable retailer.

The company said trading was in line with its expectations and that it was on track to meet its guidance for fiscal 2025 while making progress on its long-term plan.

Demand for its “key luxury brands, particularly products on the Register of Interest lists, remains strong in both the UK and US markets, outpacing supply, with ongoing additions and conversions.”

Over the 18-week period, the UK market saw “continued stability” in both luxury watches and jewellery “after a period of challenging macroeconomic conditions in the previous financial year”.

In the first half of this year, the company is increasing showroom inventory levels in the U.S. “to enhance offerings and customer experience,” and expects growth in the U.S. to be likely in the second half.

It is important to note that Roberto Coin’s integration is “progressing according to plan” following the acquisition in May. The company said it has “received positive feedback from our retail partner network and sales data is encouraging.” The company promised “exciting growth plans for the US market.”

The company aims to “grow and develop the Roberto Coin brand, and we are actively negotiating the opening of new single-brand stores in the United States, along with franchise models with department store partners.”

Also important is that branded luxury jewellery performed well globally, with the company announcing the exclusive launch of David Yurman and Repossi products in the UK.

“We have made good progress on our luxury jewellery store in Manchester, which is expected to open in April 2025. This store will be the exclusive retail partner for a number of luxury jewellery brands outside London,” the company added.

The group continued its showroom development programme, with the opening of the Mappin & Webb showroom in Edinburgh and a new 2,000 square foot Patek Philippe showroom in Betteridge Greenwich, Connecticut.

The company has made good progress on key projects scheduled to open in the second half of the year, such as the new Rolex flagship in Old Bond Street, London, scheduled to open in March; the Audemars Piguet Townhouse, Manchester, ready in Q4 FY25; the conversion of Mayors Lenox, Atlanta to Rolex in Q3; and the expansion of Watches of Switzerland Plano, Texas to include a new Rolex dealership, also in Q3.