The world’s biggest luxury watch retailer has set out bullish plans to more than double sales and profits over the coming five years and grow its share of the posh branded jewellery and pre-owned watch markets.
Watches of Switzerland Group, which owns Goldsmiths and Mappin & Webb, said despite the headwinds facing retail it was confident of pushing turnover beyond £3 billion by 2028.
Shares in the Leicestershire-based business were up more than 9 per cent today at 567p after news that it saw big opportunities for growth across UK, US and Europe.
Overall the group plans to put between £350 million and £500 million into new stores, showroom upgrades, more single-brand stores and acquisitions – as well as its online operations – between now and 2028.
Back in August shares in the group plummeted after Rolex bought one of its key rivals, Bucherer.
That came after a drop in demand for luxury jewellery had combined with slower UK and European sales to push its global revenues down. It is the UK’s biggest retailer if Rolex watches – as well as OMEGA, Cartier, TAG Heuer and Breitling.
However, today the group said sales for the last six months were up year-on-year.
Outlining its long-term strategy, the group said it had grown substantially in the States since buying out the Mayors chain over there in 2017, with the US now accounting for 42 per cent of all sales. Going forward US sales growth was set to outpace the UK, and included a new Rolex boutique in Plano, Texas and a multibrand showroom in One Vanderbilt, New York.
Recent moves into Europe were also paying off, it said, and would make up 4-6 per cent of global sales by 2028.
The business said investment in luxury branded jewellery at home would include a dedicated Mappin & Webb showroom in Manchester in 2015, which would include the first De Beers boutique outside of London.
Chief executive Brian Duffy said he was excited to capitalise on the group’s position as the “world’s largest luxury watch retailer”.
He said: “The group is stronger than it has ever been, and we are tracking well ahead of the original plan we outlined in 2021, with a diverse pipeline of projects already scheduled for FY24, FY25 and FY26, which includes our strongest ever pipeline of committed Rolex projects.
“Our longstanding brand partnerships, leading multichannel capabilities, sophisticated marketing, and exceptional client service elevating the luxury experience truly sets us apart.
“Today’s long range plan demonstrates our confidence in more than doubling our sales and profits from FY23 to FY28, aiming to surpass the milestone of £3 billion in revenue whilst driving operational leverage and accelerating new showroom projects and M&A [mergers and acquisitions] activity.
“We also see significant growth potential in the luxury branded jewellery market and we are now perfectly positioned to apply our market leading luxury watch model and expertise in elevating luxury brands to this growing category, which we expect to comprise a substantially larger share of our total revenue as we expand our offer and leverage partnerships with US megabrands.
“We are very proud of what we have achieved in the last three years and have set ambitious though attainable goals for the long range plan. “
