Watches of Switzerland Group has reported successful early performance from its recently launched Rolex certified pre-owned program in the U.S. and U.K. The luxury-watch retailer plans to further expand showrooms to meet the growing demand for pre-owned luxury watches.
“Demand dynamics remain strong, and our client registration lists continue to grow, whilst the pre-owned market remains a significant opportunity… We will continue to expand the number of showrooms to meet demand for all pre-owned luxury watches and are excited by the growth potential in this category,” said Chief Executive Brian Duffy.
The company launched its U.S. Rolex certified pre-owned program in July and its U.K. program in September.
During the first half of fiscal 2024, Watches of Switzerland opened 19 showrooms globally and refurbished seven more. The company also plans to integrate the 15 Ernest Jones showrooms, acquired last month, throughout the rest of the year.
As of October 29, the company had a total of 211 showrooms, with 56 located in the U.S.
For the half-year ended October 29, pretax profit reached £66.5 million ($83.5 million), compared to £82.7 million in the same period the prior year. Revenue slipped slightly from £765.2 million to £761.4 million. In the U.S., which accounts for approximately 43% of the group’s revenue, sales rose 11% to £328 million, while in the U.K. and Europe they fell 4% to £433 million due to challenging consumer conditions in the U.K.
Looking ahead, Watches of Switzerland expects full-year revenue between £1.65 billion and £1.70 billion, representing a constant-currency rise of 8%-11%.
“We are well positioned for a good holiday trading period… We remain on track to deliver full-year guidance, with our confidence for H2 underpinned by the reopening of several high-revenue showrooms which were closed for upgrade in H1,” noted Duffy.
At 1047 GMT, the company’s shares were up 5.50 pence, or 0.8%, at 661.0 pence.