LONDON: Watches of Switzerland, a leading retailer of premium Swiss watches, has raised its full-year revenue guidance and revealed an ambitious long-term growth plan, after delivering a solid performance in the second quarter.

The company’s shares jumped 10.6% to £576.00 on Tuesday morning, as it announced that its Q2 revenue increased by 1.3% year-on-year to £379 million, driven by strong demand for luxury watches in the UK, US, and Europe.

The company’s revenue for the first half of the year was slightly down by 0.5% to £761 million, but still resilient amid the challenging market conditions.

The US market was a key growth driver for the company, with revenue rising by 4% to £165 million in the first half of the year. The UK and Europe markets were stable, with revenue at £214 million.

The company also shared its impressive track record from fiscal year 2015 to 2023, with a compound annual growth rate (CAGR) of 19% for revenue and 44% for adjusted EBIT.

Looking ahead, the company expects to more than double its sales and profits from fiscal year 2023 to 2028, aiming to surpass £3 billion in revenue. The company plans to leverage its strong position in the UK and US markets, which are growing faster than the industry average. The company also expects to expand its presence in Europe, which will account for 4% to 6% of group sales in fiscal year 2028.

Brian Duffy, the CEO of Watches of Switzerland, commented: “Today’s long-range plan demonstrates our confidence in more than doubling our sales and profits from FY23 to FY28, aiming to surpass the milestone of £3 billion in revenue whilst driving operational leverage and accelerating new showroom projects and mergers & acquisitions activity.”