TIDMWOSG
RNS Number : 3742P
Watches of Switzerland Group PLC
09 February 2023
9 February 2023
Watches of Switzerland Group PLC
Q3 FY23 Trading
for the 13 weeks (Q3 FY23) and 39 weeks (9M FY23) to 29 January
2023
Strong Q3 FY23 trading with reported revenue +17%
Full Year Guidance reiterated
Brian Duffy, Chief Executive Officer, said:
"I am pleased with our strong Q3 performance which is testament
to our continued investment in leading showroom design, the
strength of our brand partnerships, our scale, our dedication to
omnichannel excellence, and our exceptional client service. I would
like to thank all my colleagues for their ongoing dedication and
hard work especially during the Holiday period. Demand remains
strong and continues to exceed supply, with client registration
lists growing. We exited the quarter with good momentum and are
pleased to reiterate our full year guidance.
"Our expansion into Europe continued with the opening of our
fifth mono-brand boutique, with OMEGA in Stockholm in the third
quarter. Early trading remains positive, and we are excited to open
our first mono-brand boutique in Dublin with TAG Heuer later this
month.
"Looking ahead, we remain confident that our strategy will
further enhance our leadership position as we continue to deliver
on our Long Range Plan objectives."
Financial Highlights:
Q3 FY23 Group revenue GBP407 million (Q3 FY22: GBP348 million),
+17% at reported rates, +12% at constant currency
9M FY23 Group revenue GBP1,172 million (9M FY22: GBP934 million)
+25% at reported rates, +19% at constant currency
-- Performance in the quarter was driven by luxury watches,
where demand continues to exceed supply
-- Q3 FY23 luxury watches +22% at reported rates to GBP340
million, representing 84% of revenue (Q3 FY22: 80%) with growth
driven by an increase in average selling price and volume
-- Q3 FY23 luxury jewellery (2%) at reported rates to GBP41
million, reflecting our continued focus on full price sales with
average selling price increasing in the quarter
-- Group ecommerce revenue +5% on last year at reported rates
with continued investment in our omnichannel strategy through
improved product ranging, increasing availability for next day
delivery and expanding our virtual boutique team offering expert
client services
-- Pre-owned continues to trade well delivering strong revenue
growth in both the UK and the US
-- Q3 FY23 inventory levels reduced in line with planned
seasonality with free cash conversion for the full year expected to
be c.70%
Q3 FY23 Performance by Geography:
US revenue GBP169 million (Q3 FY22: GBP125 million), +36% at
reported rates, +22% at constant currency
-- Revenue growth excluding acquisitions +17% at constant
currency, with the five showrooms acquired in FY22 annualising
during Q3
-- Strong underlying growth reflecting ongoing success of our
model and the strength of client demand
UK & Europe revenue GBP238 million (Q3 FY22: GBP223
million), +7% vs Q3 FY22
-- UK performance continues to be driven by domestic clientele
with limited return of tourist spending
-- UK showroom development programme continues with several projects completed in the quarter:
o Reopened our newly refurbished and expanded Watches of
Switzerland multi-brand showroom at Canary Wharf, London
o Rollout continued of the Goldsmiths Luxury format with the
refurbishment of our showroom in Brent Cross, London and the
relocation and expansion of our showrooms in Cribbs Causeway,
Bristol and Solihull
o In Glasgow we opened our first UK mono-brand boutique with
Longines
-- We continue our expansion into Europe, opening our fifth
mono-brand boutique, with OMEGA in Stockholm and will open our
first mono-brand boutique in Dublin with TAG Heuer this month.
Early trading remains in line with expectations
Outlook
-- We believe the strength of the luxury watch and jewellery
categories, the unique supply/demand dynamics of luxury watches and
client registration lists, our portfolio of leading brand
partnerships, and the success and agility of our model will
continue to support long term sustainable sales growth. We remain
confident in our Long Range Plan objectives
-- FY23 guidance reflects current visibility of supply of key
brands, announced pricing, and confirmed showroom refurbishments,
openings, and closures and excludes uncommitted capital projects
and acquisitions
-- Guidance is on an organic, pre-IFRS 16 basis with Q4
projected using a GBP/$ 1.24 exchange rate:
o Revenue: GBP1.50 - GBP1.55 billion
o Adjusted EBITDA %: flat to +0.5%
o Depreciation: GBP33 - GBP35 million
o Adjusted EBIT: GBP163 - GBP175 million
o Total finance costs: cGBP5.5 million
o Underlying tax rate: 21.5% - 22.0%
o Capex: GBP70 - GBP80 million including new offices in the UK
o Year end net cash: GBP35 - GBP45 million, with free cash conversion expected to be c.70%
The equivalent guidance on an IFRS 16 basis is:
o Adjusted EBIT: GBP178 - GBP190 million
o Depreciation: GBP81 - GBP85 million
o Total finance costs: GBP21 - GBP24 million
-- Committed capital projects for Q4 FY23:
o New Watches of Switzerland flagship showroom in the American
Dream complex, New Jersey opening April 2023
o Three mono-brand boutiques opening in the UK and Europe
o Continued roll out of Goldsmiths Luxury with two showroom
refurbishments planned
o One further showroom to be refurbished in the Mayors network
in Dadeland, Florida
-- Other announced showroom openings:
o Third Watches of Switzerland showroom in Manhattan at One
Vanderbilt anchored by OMEGA and Cartier
o New Flagship Rolex Boutique on Bond Street with around 7,000
sq ft of selling space
Q3 FY23 Revenue performance by geography
Q3 FY23 Q3 FY22 Q3 FY23 vs Q3 FY23 vs Q3
Q3 FY22 FY20
----------------
13 weeks 13 weeks
to to Constant Constant
29 Jan 30 Jan Reported currency Reported currency
(GBPmillion) 2023 2022 YoY % YoY % YoY % YoY %
--------- --------- --------- ----------- ----------- -----------
UK & Europe 238 223 +7% +7% +30% +30%
--------- --------- --------- ----------- ----------- -----------
US 169 125 +36% +22% +127% +110%
--------- --------- --------- ----------- ----------- -----------
Group Revenue 407 348 +17% +12% +58% +53%
--------- --------- --------- ----------- ----------- -----------
9M FY23 Revenue performance by geography
9M FY23 9M FY22 9M FY23 vs 9M FY23 vs 9M
9M FY22 FY20
----------------
39 weeks 39 weeks
to to Constant Constant
29 Jan 30 Jan Reported currency Reported currency
(GBPmillion) 2023 2022 YoY % YoY % YoY % YoY %
--------- --------- --------- ----------- ----------- -----------
UK & Europe 692 642 +8% +8% +38% +38%
--------- --------- --------- ----------- ----------- -----------
US 480 292 +64% +44% +159% +143%
--------- --------- --------- ----------- ----------- -----------
Group Revenue 1,172 934 +25% +19% +71% +67%
--------- --------- --------- ----------- ----------- -----------
Q3 FY23 and 9M FY23 Revenue performance by category
(reported)
Q3 9M
------------------
13 weeks 13 weeks 39 weeks 39 weeks
to to to to
(GBPmillion) 29 Jan 30 Jan 29 Jan 30 Jan
2023 2022 YoY % 2023 2022 YoY %
--------- --------- ------ --------- --------- ------
Luxury watches 340 280 +22% 1,007 789 +28%
--------- --------- ------ --------- --------- ------
Luxury jewellery 41 42 (2%) 97 82 +18%
--------- --------- ------ --------- --------- ------
Other 26 26 (3%) 68 63 +7%
--------- --------- ------ --------- --------- ------
Group Revenue 407 348 +17% 1,172 934 +25%
--------- --------- ------ --------- --------- ------
The financial information contained herein is unaudited.
Ecommerce revenue are sales which are transacted online.
Growth rates are calculated on unrounded numbers.
Conference call
A conference call for analysts and investors will be held at
9.00am (UK time) today. To access the webcast, please use the
following details:
Dial-in (UK): 020 3936 2999
Dial-in (all other locations): +44 20 3936 2999
Participant access code: 470372
Contacts
The Watches of Switzerland Group
Bill Floydd, CFO +44 (0) 207 317 4600
Stephanie Crinnegan, Director of Investor Relations &
Corporate Affairs +44 (0) 776 710 0603
investor.relations@thewosgroup.com
Headland
Lucy Legh / Rob Walker / Joanna Clark +44 (0) 20 3805 4822
wos@headlandconsultancy.com
About the Watches of Switzerland Group
The Watches of Switzerland Group is the UK's largest luxury
watch retailer, operating in the UK, US and Europe comprising five
prestigious brands; Watches of Switzerland (UK and US), Mappin
& Webb (UK), Goldsmiths (UK), Mayors (US) and Betteridge (US),
with a complementary jewellery offering.
As at 29 January 2023, the Watches of Switzerland Group had 192
showrooms across the UK, US and Europe including 77 dedicated
mono-brand boutiques in partnership with Rolex, OMEGA, TAG Heuer,
Breitling, TUDOR, Audemars Piguet, Grand Seiko, BVLGARI and FOPE
and has a leading presence in Heathrow Airport with representation
in Terminals 2, 3, 4 and 5 as well as seven retail websites.
The Watches of Switzerland Group is proud to be the UK's largest
retailer for Rolex, OMEGA, Cartier, TAG Heuer and Breitling
watches.
www.thewosgroupplc.com
Disclaimer
This announcement has been prepared by Watches of Switzerland
Group PLC (the 'Company'). It includes statements that are, or may
be deemed to be, "forward-looking statements". These
forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes",
"estimates", "anticipates", "expects", "intends", "plans", "goal",
"target", "aim", "may", "will", "would", "could" or "should" or, in
each case, their negative or other variations or comparable
terminology. They appear in a number of places throughout this
announcement and the information incorporated by reference into
this announcement and may include statements regarding the
intentions, beliefs or current expectations of the Company
Directors or the Group concerning, amongst other things: (i) future
capital expenditures, expenses, revenues, earnings, synergies,
economic performance, indebtedness, financial condition, dividend
policy and future prospects; (ii) business and management
strategies, the expansion and growth of the Group's business
operations; and (iii) the effects of government regulation and
industry changes on the business of the Company or the Group.
By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future and may be
beyond the Company's ability to control or predict. Forward-looking
statements are not guarantees of future performance. The Group's
actual results of operations, financial condition, liquidity, and
the development of the industry in which it operates may differ
materially from the impression created by the forward-looking
statements contained in this announcement and/or the information
incorporated by reference into this presentation.
Any forward-looking statements made by or on behalf of the
Company or the Group speak only as of the date they are made and
are based upon the knowledge and information available to the
Directors on the date of this announcement, and are subject to
risks relating to future events, other risks, uncertainties and
assumptions relating to the Company's operations and growth
strategy, and a number of factors that could cause actual results
and developments to differ materially from those expressed or
implied by the forward-looking statements. Undue reliance should
not be placed on any forward-looking statements.
Before making any investment decision in relation to the Company
you should specifically consider the factors identified in this
document, in addition to the risk factors that may affect the
Company or the Group's operations which are described in the 2022
Annual Report and Accounts in Risk Management and Principal Risks
and Uncertainties.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTSSAFUAEDSEFE
(END) Dow Jones Newswires
February 09, 2023 02:00 ET (07:00 GMT)
Watches Of Switzerland (LSE:WOSG)
Gráfico Histórico do Ativo
De Jan 2025 até Fev 2025
Watches Of Switzerland (LSE:WOSG)
Gráfico Histórico do Ativo
De Fev 2024 até Fev 2025
