Watches of Switzerland says UK luxury watch market is stabilising

The company, which is one the major global sellers of Rolex watches, saw profit fall 40% last year.

Watches of Switzerland has said the UK’s luxury watch market is beginning to improve again after a sharp drop in consumer confidence in recent years (Yui Mok/PA) (PA Archive)

The UK’s luxury watch market is beginning to improve again after a sharp drop in consumer confidence in recent years, according to Watches of Switzerland.

The London-listed firm, which is one the major global sellers of Rolex watches, saw profit fall 40% to £92 million in the year to April 28, but said it is “cautiously optimistic” of an improvement in trading.

Chief executive Brian Duffy said: “The UK market is starting to show signs of stabilisation.

“In (financial year) 2024, UK and Europe sales were down 5%, impacted by significant price increases overall at a time of reduced consumer confidence influencing discretionary spending, and we see these pressures easing in (financial year) 2025.”

He added that the US business has gone “from strength to strength… and will soon represent half of group sales”.

US revenue grew 6% to £692 million, meaning the market represents nearly half of the company’s total turnover of £1.54 billion.

Watch sales were up 3%, while jewellery fell 13%. Watch sales represent 87% of the business.

Watches of Switzerland also saw improvements from the launch of its Rolex-certified pre-owned offering, which Mr Duffy said “represents a significant opportunity” for the company.

Pre-owned luxury watch sales doubled year on year in the final quarter, while Rolex-specific sales are performing ahead of company expectations.

The business held previous guidance for next year, with revenues expected to grow between 9% and 12% to about £1.7 billion.

“The industry as a whole is being more conservative on production, which we believe is a responsible approach to the long-term stability of the luxury watch market,” the company added in the trading update.

Shares in the company rose 10% on Thursday morning.