Watches of Switzerland Group PLC (LON:WOSG) announced plans to further expand in the EU and US markets as trading remains strong.
With the UK, its core area, the total addressable market for luxury watches is US$21bn.
The retailer said that the UK market has the highest per capita retail spend by domestic customers on luxury watches, and by investing in the retail space in other areas it can replicate the same business model.
Over the next five years, capital expenditure will be £300-340mln with potential acquisition spend in the US and EU of £150-200mln.
By 2026, the FTSE 250 group expects UK revenue to account for 44-48% of the total, from 67% currently, with the US rising to 47-48% from 33% currently and the EU to 5-8%.
With sales shifting to domestic customers during the pandemic, the firm does not anticipate any significant recovery in international tourism spend in the UK with sales from the domestic customers reaching 92% in 2026, from 94% in 2021 and 72% in 2020.
In the 53 weeks ending 2 May, revenue surged 13% to £905mln, with adjusted underlying earnings (EBITDA) up 35% to £105mln. Net debt was cut to £43mln from £129mln in April 2020.
Shares dipped 2% to 838.5p on Thursday morning.