Q3 FY24 Trading Update
for the 13 weeks (Q3 FY24) and 39 weeks (9M FY24) to
Guidance reconfirmed from
Financial Highlights:
9M
· As outlined in the
· Demand for our key brands, particularly products on the Registration of Interest lists, continues to be strong, with consistent additions and conversions
· Q3 FY24 luxury watches +1% at constant currency to
· Q3 FY24 luxury jewellery -16% at constant currency to
· Group ecommerce revenue -15% on last year at reported rates. Impacted by the mix of products through this channel and performance of the
· Continued positive momentum within pre-owned and now in 14 agencies for Rolex Certified Pre-Owned in the US and 10 in the
· Addition/expansion of prestigious luxury jewellery brands within the portfolio
Performance by Geography:
US revenue of
9M FY24 US revenue
· US sales remained strong across all regions
· Sustained growth reflecting the success of our model and strength of client demand
· Gaining market share in the fragmented US luxury watch market
· Relocation of Rolex boutique Millenia,
· Partnership with
9M FY24
· Challenging macroeconomic conditions in the
· Consumers allocating discretionary spend to other categories such as fashion, beauty, hospitality and travel over this period
· We continued to gain share in the luxury watch market due to our differentiated offering
·
· Rebranding, colleague training and systems conversions completed for the fifteen showrooms acquired from
· Showroom development programme continues with several projects completed in the period:
o Continued roll-out of Goldsmiths Luxury showroom format, including the expansion of the Birmingham Bullring and Metrocentre Newcastle showrooms, and the relocation of
o Further roll-out of the
Outlook
· Guidance reconfirmed from our
· Guidance reflects current visibility of supply from key brands and confirmed showroom refurbishments, opening and closures, and excludes uncommitted capital projects and acquisitions
· Trading conditions experienced in Q3 FY24 in the
· Guidance includes the new Watches of
· We are encouraged by the
· FY24 guidance (on an organic pre-IFRS 16 basis):
o Revenue: |
|
o Adjusted EBIT margin %: |
8.7% - 8.9% |
o Total finance costs: |
c. |
o Underlying tax rate: |
c28% |
o Capex: |
|
o Operating cash flow conversion: |
c.50% |
|
|
The equivalent guidance on an IFRS 16 basis:
o Adjusted EBIT margin %: |
9.7% - 9.9% |
|
|
o Total finance costs: |
|
|
|
|
|
|
|
· The Group is exposed to movements in the £/$ exchange rate when translating the results of its US operations into Sterling. The actual average exchange rate for FY23 was 1.20
|
Q3 FY24 |
Q3 FY23 |
Q3 FY24 vs Q3 FY23 |
|
(£million) |
13 weeks to |
13 weeks to |
Reported YoY % |
Constant currency YoY % |
|
|
|
|
|
|
222 |
238 |
-7% |
-7% |
US |
175 |
169 |
3% |
8% |
Group Revenue |
397 |
407 |
-3% |
-1% |
9M FY24 Revenue performance by geography
|
9M FY24 |
9M FY23 |
9M FY24 vs 9M FY23 |
|
(£million) |
39 weeks to |
39 weeks to |
Reported YoY % |
Constant currency YoY % |
|
656 |
692 |
-5% |
-5% |
US |
502 |
480 |
5% |
10% |
Group Revenue
|
1,158 |
1,172 |
-1% |
1% |
|
Q3 FY24 |
Q3 FY23 |
Q3 FY24 v Q3 FY23 |
|
(£million) |
13 weeks to |
13 weeks to |
Reported YoY % |
Constant currency YoY% |
Luxury watches |
336 |
340 |
-1% |
1% |
Luxury jewellery |
34 |
41 |
-18% |
-16% |
Services/other |
27 |
26 |
4% |
5% |
Group Revenue |
397 |
407 |
-3% |
-1% |
|
9M FY24 |
9M FY23 |
9M FY24 v 9M FY23 |
|
(£million) |
39 weeks to |
39 weeks to |
Reported YoY % |
Constant currency YoY% |
Luxury watches |
1,006 |
1,007 |
0% |
2% |
Luxury jewellery |
81 |
97 |
-17% |
-15% |
Services/other |
71 |
68 |
5% |
6% |
Group Revenue |
1,158 |
1,172 |
-1% |
1%
|
The financial information contained herein is unaudited.
Ecommerce revenue are sales which are transacted online.
Certain financial data within this announcement has been rounded. Growth rates are calculated on unrounded numbers.
The Watches of
Caroline Browne, Group Finance Director +44 (0) 1162 817 420
Headland
Lucy Legh / Rob Walker / Joanna Clark +44 (0) 20 3805 4822
The Watches of
As at
The Watches of
This announcement has been prepared by Watches of
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 announcement.
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 and, except as required by law or regulation, the Company undertakes no obligation to update these forward-looking statements. No statement in this announcement should be construed as a profit forecast or profit estimate.
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 as detailed above.