Watches of Switzerland Group PLC (LSE:WOSG) has benefited from continued strong demand for luxury watches and jewellery which helped it deliver a 23% increase in group revenues to £765mln in the 26 weeks to 30 October 2022.
Growth was driven by increases in average selling price and volume with a 60% rise in revenues in the US to £311mln and a more modest advance of 8% in the UK to £454mln.
Luxury watches continued to benefit from a strong demand environment, with revenues up 31% while luxury jewellery revenues grew 38%.
Adjusted EBIT increased 29% to £87mln while adjusted EBIT margins fell slightly to 11.3% from 11.5%, despite benefiting from £5mln of UK business rates relief.
The FTSE 250-listed watches and jewellery retailer said the return on capital employed increased by 450 basis points (bps) to 27.6% in the period.
The group opened four mono-brand boutiques in Europe and said early trading had been in line with expectations with two further mono-brand boutiques opening in the second half.
In the results statement, Brian Duffy, Watches of Switzerland's chief executive officer, said: "Trading in the holiday period so far has been in line with our expectations and our guidance for FY23 remains unchanged.”
The group forecast full-year revenue of £1.50bn to £1.55bn and adjusted EBIT of £163mln to £175mln.
“We look ahead with confidence” Duffy added.