- Revenue of £391 million in Q1 was a 31% increase from the previous year.
- The company sees revenue in the second half of FY23 coming in at £1.45 billion and £1.5 billion.
- Shares increased by 3.63%.
Watches of Switzerland reported earnings for the Q1 on Tuesday, which saw strong performance across its markets.
It must be that time again. If only I had a watch…
Following the report, Watches of Switzerland shares gained 3.63%.
The company posted revenue of £391 million in Q1, a 31% increase from the previous year. The strong performance came against a strong comparative, with Q1 FY21 benefitting from pent-up demand following lockdowns.
Meanwhile, the firm saw a further acceleration in the US, with revenue up 100% year-on-year, which they believe reflects the strength of client demand.
“The first quarter continued with strong momentum throughout, and we carry this positive momentum into the second quarter,” said CEO Brian Duffy.
Duffy continued, “Despite the well-publicised concerns about the macro-environment, demand for our products remains robust with client registration of interest lists continuing to extend.”
Looking ahead, Watches of Switzerland sees revenue in the second half of FY23 coming in at £1.45 billion and £1.5 billion. Furthermore, the company expects adjusted EBITDA to be between 0% and 0.5%.
Watches of Switzerland has had a significant run since its IPO in 2019. However, this year it has seen a major setback in its share price due to numerous issues such as inflation. This may present a buy opportunity in the coming months.