Watches of Switzerland Group PLC on Thursday reported a strong rise in annual revenue, as the retailer enjoyed increased demand for both watches and jewellery and was optimistic for the current financial year.

In the financial year that ended April 30, the Leicester, England-based watch retailer reported pretax profit of £154.8 million, up 23% from £126.2 million in financial 2022, as revenue jumped 25% to £1.54 billion from £1.24 billion.

In the UK and Europe, revenue was up 9.9% to £890 million from £810 million, while US revenue was 53% ahead at £653 million from £428 million.

Luxury watch sales were 28% higher, while luxury jewellery sales increased 10%.

Watches of Switzerland pays no dividend.

Chief Executive Brian Duffy said: ‘Our record performance is testament to our unique combination of longstanding luxury brand partnerships, dedicated colleagues focused on delivering exceptional client service, and our well-invested network of showrooms, which are supported by leading multi-channel capabilities. ’

Watches of Switzerland said its guidance remains unchanged for financial year 2024.

The company expects revenue to be between £1.65 billion and £1.70 billion, up 8% to 11% at constant currency. It expects its adjusted earnings before interest and tax margin to be in line with financial 2023, when it was 10.7%.

‘We reiterate our guidance for FY24 which reflects our continued confidence in the strength of our organic growth strategy, whilst we continue to actively pursue additional inorganic growth opportunities to enhance that growth,’ Duffy added.

‘We enter FY24 significantly ahead of where we expected to be when we presented our long-range plan in 2021, and we look forward to presenting our long-range plan update, which will outline our growth ambitions beyond FY26 to FY28, in autumn this year.’

Shares in Watches of Switzerland were 8.9 higher in London on Thursday morning at 698.50 pence.

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