olex vendor Watches of Switzerland has reported a surge in annual gross sales as demand for luxurious watches outpaced provide, shrugging off a wider cost-of-living downturn.

Its share value jumped by greater than a tenth after revealing its group revenues grew by practically a fifth to £1.5 billion within the yr to the top of April.

The retailer stated the gross sales enhance was pushed by a mix of elevated common promoting costs and quantity, that means extra objects have been bought at a better value.

Luxury watch gross sales grew by 28% year-on-year, and luxurious jewelry gross sales jumped by a tenth.

“Consumer appetite for products remained strong and, in many instances, well above the levels that the group is able to supply”, the agency stated.

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Luxury watch demand stays sturdy and continues to outpace provide, with our shopper registration lists extending and common promoting costs rising

The group’s statutory pre-tax revenue jumped by practically 1 / 4, from £126 million to £155 million within the newest yr.

The “record” yr for revenues and profitability got here regardless of a more difficult buying and selling atmosphere through the second half of the monetary yr, Watches of Switzerland stated.

It was additionally pushed by a surge in revenues within the US of greater than a 3rd.

In the UK, vacationer gross sales stay “very low” and demand was pushed by home prospects, however extra customers returned to airports through the yr, it revealed.

The retailer, which additionally sells manufacturers together with Cartier, Tudor, and Patek Philippe, has been shaking up its chain of retailers across the nation.

It opened 5 showrooms at Battersea Power Station in London and 10 single-brand boutiques throughout the UK, however closed six showrooms elsewhere.

It can also be because of open a brand new showroom in St Anne’s in Manchester and a flagship retailer Old Bond Street in London subsequent yr.

The agency expects to report slower income progress of between 8% and 11% subsequent yr.

Brian Duffy, Watches of Switzerland’s chief govt, stated: “Luxury watch demand remains strong and continues to outpace supply, with our client registration lists extending and average selling prices growing.”

Danni Hewson, the top of economic evaluation at AJ Bell, stated: “The fact it has achieved stellar growth in a cost-of-living crisis shows that not everyone is short of money.

“The market has previously worried that the luxury goods market might not be as resilient as previously thought.

“Despite the uncertain economic backdrop, the fact Watches of Switzerland hasn’t downgraded its guidance has been taken as a massive positive in the eyes of investors.”