Strong growth propels luxury product retailer towards ambitious future plans
Leicester-based luxury products retailer Watches of Switzerland have presented its Long Range Plan, which shows its strategy over the next five years.
The Long Range Plan sees group sales exceed £3bn, with the UK and US leading its sales.
The plan focuses on expanding into new growth opportunities, especially in the Pre-Owned watch market, with a focus on Rolex certified pre-owned watches in the US and UK.
This leads from the company showing growth from FY15 to FY23 with revenue increasing by 19.3% annually.
It’s return on capital employed improved by 21.2% reaching 27.9% in FY23.
Moreover, it’s European market entry has seen growth, with nine boutiques across four countries.
Watches of Switzerland’s performance exceeds the original Long Range Plan, with FY24 sales estimated to be around £200m ahead of the plan, showcasing a CAGR growth of 23%, surpassing the initially projected 18%.
Adjusted EBIT has also outperformed, achieving a CAGR of 32% compared to the 25% anticipated in the original plan.
Brian Duffy, chief executive officer said: “I am excited to present our Long Range Plan to FY28. It represents our strategy over the next five years to capitalise on our leading market positions and the unique growth opportunities available to us as the world’s largest luxury watch retailer.
“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.
“We are excited by the opportunity available to us in the Pre-Owned market, particularly from the new Rolex Certified Pre-Owned programme, which we expect to deliver 20% of new Rolex in the US and 10% in the UK by FY28. Analog:Shift/Non-Rolex Certified Pre-Owned is expected to deliver sales CAGR of more than 35% and 25% in the US and UK respectively.
“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. The plans are built on a number of specific growth opportunities, and we are confident in our ability to deliver these objectives.”
