ZURICH, July 8 (Reuters) – Britain’s luxurious watch retailer Watches of Switzerland (WoS) WOSG.L expects robust progress in its British market within the subsequent 5 years and has allotted money for acquisitions in the USA and European Union, its chief government stated.
With most shops reopened after closing throughout the pandemic, gross sales of Swiss watches are seeing a powerful restoration. The corporate, which sells Rolex, Cartier CFR.S and Omega UHR.S timepieces, has been increasing its retailer community and boosting on-line gross sales.
“We predict the UK luxurious watch market will enhance between 8% and 10% per yr over the following 5 years. We’ll outperform that by a few factors,” Brian Duffy instructed Reuters.
Though Britain was unlikely to see a quick restoration in abroad guests, who now not profit from tax-free buying, he stated home demand remained robust as the corporate opened extra shops and boosted on-line gross sales.
The corporate, which acquired U.S. jeweller Mayors in 2017, stated U.S. income was anticipated to develop 25%-30% a yr within the subsequent 5 years supported by acquisitions and different funding. America now accounts for a 3rd of group income.
“We’re very bullish on the U.S. We predict the market is clearly underinvested and underdeveloped,” Duffy stated.
The group plans to spend 300 million to 340 million kilos ($413 million-$468 million) to broaden, with as much as 200 million kilos of that to be spent on acquisitions in the USA and European Union, a area the corporate expects to account for five%-8% of group gross sales by 2026.
WoS, which confirmed its fiscal 2022 steering of 16%-21% gross sales progress, stated gross sales rose 13.3% to 905.1 million kilos within the 53 weeks to Might 2. Adjusted earnings earlier than curiosity tax jumped by 39% to 77.6 million kilos.
($1 = 0.7260 kilos)
(Reporting by Silke Koltrowitz; Enhancing by Edmund Blair)
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