Although it’s all over the news in the UK, the current cost-of-living crisis being argued over by politicians seems to be having little effect on the country’s big spenders who continue to splash out on luxury goods, especially expensive watches.
Luxury retailer “Watches of Switzerland”, says it expects revenue, in the current 22/23 trading period, to be between £1.45 and £1.50 billion. This comes on the back of solid results for the year to 1st May 2022, which showed turnover up 40% to £1.24 billion and a doubling of pre-tax profits to £126 million. That’s quite impressive in anyone’s book.
The company, which is headquartered in Leicestershire has 171 stores across the UK and US. They sell key brands such as Rolex, Patek Philippe, and Breitling, with an average price tag of around £6,000.00 for each piece. Chief executive Brian Duffy believes the strength of the luxury watch market, where buoyant demand meets scarcity of supply, coupled with its strong business model will continue to support “sustainable strong sales growth”.
Duffy went on to say “we are undoubtedly operating in a niche growth segment, but it’s our distinctive and proven business model, the strength of our brand partnerships, international scale, bold marketing campaigns, and dedication to exceptional client service which sets us apart”. In further affirmation of its growth trajectory, the company is also in the early stages of expanding into Europe, with stores set to open in Ireland, Sweden, and Denmark this year.
Their continuing success is in stark contrast to the dismal state of the UK economy, as highlighted by comments from the boss of food giant Sainsbury’s who warned that pressure on household budgets “will only continue to intensify over the remainder of the year”.
So is a premium watch a good investment? Well, although there are the usual keen collectors out there that may be less financially challenged than the average Joe, it seems that an ever-increasing number of people across all spectrums see a good watch as a sound store of wealth especially when you look at the alternative investment options.
If you’re interested in making an investment, why not get in touch!
