Watches of Switzerland sets its sights on more US acquisitions

Watches of Switzerland expects to make further acquisitions in the US,  which it first entered in 2017 with the purchase of jeweller Mayors, its  CEO said. 

Owned by US-based private equity firm Apollo Global Management, Watches of Switzerland has since opened several stores, including in

Las Vegas and New York.

“Could we add other businesses? Very easily,” Brian Duffy said at this week’s Baselworld watch fair.

The Watches of Switzerland group, which sells brands such as Rolex, Richemont’s Cartier and Swatch Group’s Omega, as well asmore than 130 showrooms, is the biggest watch retailer in Britain and a candidate for a stock market listing.

Luxury watch distribution is undergoing major changes, with many small, family-owned businesses unable to keep up with the challenges of e-commerce, while watch brands are shutting down shops which do not meet their standards.

“If it’s a quality business, the right location of stores and support from the brands, it would be obvious that we’d be open to it. Probably over  a couple of years ahead, we’ll do some deals in the area,” Duffy said. 

Watches of Switzerland, which spans its eponymous stores as well as Mappin & Webb, Goldsmiths, Mayors, Watchshop and Watch Lab competes with rivals such as Lucerne-based Bucherer, which in 2018 bought US jeweller Tourneau.

 In 2018 the company, which has been under Apollo’s control for more than six years, flagged that its owners were working with advisers on strategic options, including a potential initial public offering (IPO).

Duffy said that an IPO, if it happened, would most likely be on the London Stock Exchange.

“It would be good for our group with its size and scale to have public ownership, reduced leverage and great governance and accountability, sources of capital if that's ever necessary,” he said, without giving further detail.

Apollo declined to comment. The group’s revenue grew 21%  to £685m  in 2017/2018, and its operating profit rose by more than a third to £37m millionpounds, about twice the levels when Apollo bought it in 2013.

• Reuters