Watches of Switzerland is ticking along

INVESTORS ARE LOOKING FOR ANOTHER ROBUST UPDATE FROM THE SPECIALIST RETAILER

A third quarter update (9 February) from Watches of Switzerland (WOSG) provides a window to see if the luxury watch retailer continued to trade positively over Christmas and New Year. On 14 December the Rolex-to-Breitling purveyor, which benefits from pricing power and longstanding brand partnerships and which has momentum in the US, reported a 31% jump in first half sales to £765 million. Watches of Switzerland also reiterated full year guidance citing ongoing ‘strong demand’ for high-end timepieces and jewellery, while CEO Brian Duffy highlighted an ‘encouraging ongoing improvement in airport business’. Luxury goods groups have hitherto proven immune from cost-of-living pressures given well-heeled customers have the means to splash the cash on prestige products. These include Rolex and other collectable watches, which history suggests can appreciate in value. [JC]