Watches of Switzerland Group PLC
Q4 FY22 Trading
for the 13 weeks (Q4) and 52 weeks (FY) to 1 May 2022
Stellar end to FY22 with strong momentum into FY23
Revenue growth of 48% 1 in Q4, 40% 1 for the full year with improved profitability
Watches of Switzerland Group PLC (“the Group”) today provides the following unaudited update relating to
the 13 and 52 weeks ending 1 May 2022.
Brian Duffy, Chief Executive Officer, said:
“We are pleased to report a strong quarter of 48% 1 growth to finish what was an outstanding year for the Group.
We have delivered another record year of revenue and profitability as we continue to progress our Long Range
Plan. Our teams have again excelled and done great work.”
“We delivered an outstanding performance in both the US and UK, supported by broad-based sales growth
across our portfolio of world leading partner brands and driven by domestic clientele. We were also delighted
to announce our forthcoming entry into the European market, which will provide our Group with further growth
opportunities and geographic diversification.”
“The luxury watch and jewellery markets are dynamic and our Group investment-led model continues to gain
positive momentum. Consumer desire for “Super High Demand” brands (Rolex, Patek Philippe and Audemars
Piguet) continues to exceed supply and other luxury watch brands are enjoying exceptionally strong demand
and sales. Luxury jewellery demand is also very positive.”
“Looking ahead, our FY23 guidance reflects our confidence in our markets and business model. We enter
FY23 with visibility of product supply for Super High Demand brands for the remainder of the 2022 calendar
year and an exciting programme of new products and marketing from other brands. We have a strong pipeline
of showroom projects, and we expect an ongoing recovery in footfall and airport traffic. Our focus will be on
continuing to capitalise on the momentum we have built to deliver value for all our stakeholders.”
[My underlining / italics]
It seems WoS have a new term encompassing a slightly different selection of brands to 'Holy Trinity'.
Consumer desire for “Super High Demand” brands (Rolex, Patek Philippe and Audemars
Piguet) continues to exceed supply
Should read....Consumer desire for “Super High Demand” brands isn't being met due to Rolex, Patek Philippe and Audemars
Piguet restricting supply to artificially increase demand, fuelling a price-surge on the grey market resulting in those 'only' able to afford RRP being unable to purchase.
Meh!Originally Posted by TaketheCannoli
I would expect there to be a risk statement of some sort for investors referring to inflation, disposable income and how they would mitigate exposure. All seems very upbeat. I assume HNW not as exposed but equally Id expect some comment.
Probably CEO speak for what I said on another thread. Sales growth driven by brands of which there are no meaningful additional supplies. That severely limits prospects for sales and profits growth - and that’s before you factor in the impact of inflation and the economy going into freefall.
Last edited by David_D; 19th May 2022 at 18:02.
Interesting the FT among others think the luxury segment is in for a tough time. Wonder if the immediate share price drop reflects that forward looking analysis or it simply as per just about every other share price at the moment :)
expecting more then?We enter
FY23 with visibility of product supply for Super High Demand brands for the remainder of the 2022 calendar
year
“ Ford... you're turning into a penguin. Stop it.” HHGTTG
Right.
'Visibility of product supply' in context could easily be taken by the casual reader to imply that supply is known to be increasing, whereas all it actually says is that they have a good idea of how much product they'll be receiving for the rest of the year. It would be true even if the SHDBs had told them there'd be no increase from current deliveries.
This is a press release on a trading statement so expect positive spin wherever possible!
Last edited by TF23; 19th May 2022 at 22:27.
WoS share price is 40% off its peak at the beginning of January. The FTSE100 is about level despite big swings this year.
I’m wrong more often than right but I would have thought that economic reality will hit luxury goods sales. Also, notwithstanding their Rolex and other “premium” watch brands, do they not also rely on the Ratners end of the market which will definitely suffer.
Last edited by David_D; 20th May 2022 at 11:44.
I was predicting this during the 2007/2008 crash yet this was when luxury goods skyrocketed. Maybe the Far East was a driver at that point and maybe there are different dynamics now.
Shares off nearly 2% today against a 1% increase in the FTSE100 (and slightly less in the FTSE250).
Your average Patek (eg) buyer has already made his wad and is unlikely to be forced to economise by a recession. In fact, with inflation let loose, why not buy a desired watch or other luxury item now before the price goes up? (If he can get one, of course.)
Nonsense. There is no artificial restriction in place. At least with either Patek or Rolex - they both increased production in recent years, with the exception of closure during COVID.
It's just a matter of time...
im not so sure about that. I very much did see prices fall on Rolex and Patek in the grey and trade, bids from dealers was very low or non existent (i was selling a few pieces at the time). likewise if you wanted to buy a porsche or performance BMW you could pick your bargain.
One difference is, of course, that in 08/09 inflation was low and falling whereas now it is high and rising.
Another difference is that this time we are entering a recession (if we do) with long waiting lists already evident for many of these luxury items.
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