The latest results for Richemont’s Watchfinder business underline the challenges the luxury watches sector has been facing. Its accounts for the year to March 2024, filed at Companies House, show it making another loss.

It was last profitable in the year to March 2022 and the London-based secondhand luxury watch seller saw revenue falling this time to £93.29 million from £101 million in the prior 12-month period.

The company’s gross profit increased to £13.98 million from £9.97 million but the operating loss widened from £12 million to £12.5 million and the loss before tax edged up from £12 million to £12.6 million. It also made a net loss for the financial year of £12.6 million, wider than the £11.78 million loss of the previous year.

It explained that the strong volatility of prices in the pre-owned watch market, along with the difficult economic environment in the UK had an impact on its trading result.

Turnover in its home market fell to £79.4 million from £87 million. Yet it said that despite a challenging trading year, it maintained its position as the market leader for luxury pre-owned watch sales in Britain.

While its commentary about the year tends to focus on the situation in the UK, the company does sell in other countries, although the performance in Europe wasn’t necessarily anything to raise any cheer among the management team. 

European turnover fell to £3.6 million from £6.2 million. That said, in the rest of the world it fared better with an increase to £10.2 million from £7.7 million.

And it’s continuing to work on elevating its brand positioning, enhancing brand awareness and developing its presence further in key locations around the world. It will also look at continuing to expand the business in the UK through a combination of e-commerce and physical retail presence.