Watches of Switzerland Group PLC (LSE:WOSG) raised its full-year guidance after a better-than-expected performance in the first half amid continued strong demand for luxury watches and jewellery.
Revenue for the six months to end October jumped 45% from the year-earlier period to £586.2mln and was also 41% higher than two years before, both on a constant currency basis.
It had net cash of £30.0mln as at end October 2021 compared with net debt of £22.7mln as at 25 October 2020.
The group expects to post first-half adjusted EBITDA of £81-£83mln, up from the £52.2mln recorded the previous year. It lifted its full-year guidance as a result of the first-half performance and acquisition agreements.
It now expects full-year revenue of £1.15-£1.20bn, revised up from the guidance of £1.05-£1.10bn, and EBITDA and adjusted EBITDA margin of +1.0 to +1.5% versus last year (previous guidance flat to +0.5% versus last year). It dropped its net debt range by £10mln and increased its capital expenditure range by £5mln.
"We are very pleased with our first half performance,” said chief executive Brian Duffy. “Over the last two years, we have demonstrated the versatility of our multi-channel model with a more than doubling of sales to domestic clients and within this half year, a significant change in brand mix.
"We continue to build on a growing foundation in the US, further strengthening our position through the agreement to purchase five stores in four new states.
"The strength of our performance, both in our well-established UK business and in our growing US business, coupled with our confidence in the luxury watch and jewellery categories has led us to upgrade our guidance for the full year.
“We are well stocked for the holiday period and look forward to providing an exceptional shopping experience for our customers,” he added.
The company will publish its first-half results on December 9.