The luxury watch retailer said today it still sees exceptional demand for high-end watches despite rising interest rates and inflation and falling stock prices.
Watches of Switzerland sales jumped 40% to £1.2bn in the 52 weeks to the start of May. Sales have remained strong this year despite the outbreak of war in Ukraine and growing recession fears in the UK and US.
Managing Director Brian Duffy said: “We are pleased to report a solid quarter of growth of 48% to cap off what has been an exceptional year for the group. We delivered another record year of revenue and profitability.
The company specializes in brands such as Rolex, Tudor, heralded by David Beckham, and Cartier. These companies make watches that can cost tens of thousands of pounds.
Watches of Switzerland, which also owns Mappin & Webb and Goldsmiths, predicts even higher sales over the next 12 months despite economic storm clouds on the horizon. He expects sales of £1.45-1.5bn, although he warned profits will remain flat or rise only slightly.
Duffy said: “Consumer desire for ‘very high demand’ brands (Rolex, Patek Philippe and Audemars Piguet) continues to outstrip supply and other luxury watch brands are benefiting from demand and sales. exceptionally strong. The demand for luxury jewelry is also very positive.
Barclays analysts said: “The outlook remains remarkably strong.”
The shares fell 38.1p, or 3.8%, to 954.4p.