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Mayors Chain Owner Sees Recent Sales Double to $409 Million, Spurred by ‘Accumulated Disposable Income’ August 16, 2021 (0 comments)


Braunstone, England--Mayors chain owner Watches of Switzerland has seen its sales double to more than $409 million in recet weeks, spurred by "accumulated disposable income."

This from a recent article published by Harry Wise on the This Is Money web site. Image Credit: Mayors via Google Images.

According to the article: Watches of Switzerland has recorded a robust three months of sales thanks to substantial demand from domestic customers in Britain and the US.

The company's chief executive Brian Duffy told the Press Association that customers have opted to treat themselves, helping sales at the business to soar. He said: '"n the UK and US there is accumulated disposable income and we are an attractive category in that sense. We call our categories 'rational indulgences. 

"Buying a beautiful luxury watch, you can feel confident that it's going to preserve value, it's going to last forever, it's a family heirloom. So, therefore, in these circumstances, when people have money to spend, our category is high up in their priority list. So, definitely, we've benefited from that.'There is a willingness for people to trade up and indulge a bit more, maybe buying gold when they were thinking of buying a mix of gold and steel," he said. 

Impressive Performance

The luxury retailer saw sales of both watches and jewellery nearly double in the 13 weeks to the start of August compared to the same time in 2020 when it was severely hit by store closures.

Shares in the firm rose by 3.3 per cent to £10.58 on Tuesday as it revealed online sales also continued to grow despite British outlets being open throughout the three-month period, though at a more moderate rate of 15.9 per cent.

Its total first-quarter revenues jumped 101.9 per cent to £297.5 million ($409 million+) at constant currency levels, but they were also 45.8 per cent higher on a two-year basis.  

Sales of luxury watches continued to represent the overwhelming bulk of purchases by consumers, climbing by 97.1 per cent to more than £250million whilst luxury jewellery sales shot up 98.9 per cent to £20.1million. 

The FTSE 250 group said the impressive performance strengthened its existing full-year guidance, which revenues expected to be between £1.05billion and £1.1billion, a rise of 16 per cent to 21 per cent on the previous year.

Revenues grew at a fast pace in the group's biggest market, the UK, where it has recently opened two boutique establishments selling just OMEGA and Breitling wares in Edinburgh, as well as a TAG Heuer store in Manchester.

But compared to two years ago, sales have expanded more rapidly in the US, where it said footfall in its Las Vegas and New York has quickly recovered, and its eight new mono-brand boutiques are 'performing strongly.'

Read the full article here or click on the link below.

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