Ladies and gentlemen, welcome to the Watches of Switzerland Group's Q4 FY 2021 trading update. My name is Simona, and I will be coordinating your call today. I will now hand you over to your host, Brian Duffy, CEO of Watches of Switzerland, to begin. Brian, please go ahead. Thank you, Simona, and good morning, everybody. Thanks for joining us. I'm just going to overview the report that we put out today and to give a bit more flavor from my standpoint on the performance that we've been reporting. Q4 is difficult to get into perspective in comparison to last year because of, obviously, the full lockdown that we were in last year and partial lockdown we're in this year. As far as we're concerned, it was a very strong quarter. Throughout the quarter, we had a very strong online business here in the U.K. We had a good click and collect business prior to the openings on the 12th of April, and then a very strong response from our markets beyond our expectation, actually, when the stores reopened. Fundamentally, a very, very strong continued business in the U.S., where all of our stores are open, trading, and doing a great job. We think it was a great quarter overall, and interestingly, if you look at it against FY 2019, as you'll see in the report, up 24.7%, and luxury watches up 30% if we compare to FY 2019. We would focus on looking at the year overall, and the year's characterized by what we see as exceptional growth in the U.S. market, dollar to dollar, plus 38.5%. Despite the business there facing some headwinds, we had lockdown at the beginning of our year. Stores started to reopen in May and weren't fully reopened through to August. Clearly dealing with the subdued traffic, particularly in places like Vegas, where we have a big presence, hugely reduced traffic there. New York, where fewer people coming to work or socialize or shop. We overcame, I think, a lot of these challenges with great marketing, great use of our technology, great client reach out with our CRM and clienteling methods. We had great reference from customers who were having good experience for other customers to come to us. I think we're very proactive and very confident we outperformed the market overall in the U.S. The market, at the end of the day, was strong. I think we'd acknowledge that throughout the year, and if anything, picking up pace as the year went on. Our teams in the U.S., again, they really are the best, and they did a fantastic job throughout the year. U.K. were up 3.6%, and I think that is equally as exceptional as the U.S. when you take into account the headwinds in the U.K. We were closed for 26 weeks of the year, I mean, half of the year. Our shops were unavailable to our consumers. Our international and airport business was a small fraction of what it typically had been historically. We responded to that by being hugely active on digital. Online business more than doubled. As you've seen in the last quarter, more than trebled. Click and collect that we were able to do in lockdowns two and three were very, very helpful to keeping a core business going. When our stores were open between lockdowns, including the most recent reopening, business has been very, very strong. Compared to fiscal year 2019, again, we're looking at a plus 18% overall. The team, again, U.K., full of enthusiasm, professional, really well-trained, couldn't wait to get back in store again, and doing a tremendous job. Some other headlines to take away. Our domestic business, our domestic sales are effectively 95% of our total. We really are a domestic business. If you look back at the last fiscal year, luxury watches is now 87% of our total. The top eight brands that we refer to now representing 81%. In addition to sales performance, I think we've outperformed on profits. We clearly haven't finished our audit overall, but we're confident enough to give the indication that we have there of adjusted EBITDA, 104-107. That represents 33%-37% improvement on FY, which we're clearly very pleased to report. Based on that and the good performance, we're repaying the furlough money for the year. We've repaid the government financing that we took out as a precaution at the start of the year. We're also really delighted to be announcing the creation of a Watches of Switzerland Group Foundation to whom we'll be contributing GBP 3 million, GBP 1.5 million booked this year, GBP 1.5 million committed for next year, which we're very pleased and very appreciative of the board's support to do that. One other number we're very pleased to see, too, is our level of debt that's down at GBP 43.9 million. This time last year, GBP 130 million. We feel good about the year. We're really glad it's behind us, and it clearly was a very challenging year for the world. We know it's not over, but I think perspective, obviously, a lot more positive. We share that going into FY 2022. Based on that, we've done our plans, we've done our projections, we feel confident in the perspective we're looking at. We're clearly staying with our proven strategies that are working for us well. We have a really good pipeline of projects, one or two that were delayed, particularly in the U.S., that are carrying into fiscal year 2022. A big assumption we are making is that we're not going to be affected by any further lockdowns in the next year, in the U.K., the U.S., or Switzerland. We have visibility, as we typically do at this point, in the supply situation from key brands. Again, we've been consistent in doing that historically. It all leads us to say that next year we think we can increase our sales between 16% and 21%. Overall, that's GBP 1.05 billion-GBP 1.1 billion. Adjusted EBITDA, we think we could leverage potentially a bit. Flat to a 0.5 improvement means +16% to +26% on profitability, on profits. That's where we are. With that, very happily take your questions. Ladies and gentlemen, if you would like to ask a question, please press star followed by one on your telephone keypad. When preparing to ask your question, please ensure your phone is unmuted locally. Our first question is from Anne-Laure Bismuth of HSBC. Anne-Laure, your line is open. Please go ahead. Yes, hi. Good morning. Thank you for taking my question. I have three, actually. My first question is it possible to have an idea of the luxury watches sales growth this year between the split between price and volume? The second question is about the U.S. market. Any key learnings in the U.S. market so far in terms of brand preferences in the luxury watches. Is it the same in the U.S. and in the U.K. market? Finally, on the online performance, online was obviously very strong and especially in the U.K. Have you observed a change since stores have reopened in the U.K.? About the performance in online in the U.S., how is it performing? Thank you very much. I'll give the answer. Hi, it's Anders. I'll give the answer on the volume mix question. In terms of luxury watches, year-on-year volumes for the group were essentially flat. It's driven by average selling price improvement. Within that, the vast majority of that is mixed towards, obviously, Rolex, Patek, and Audemars, the higher price point brands. Okay. With regards to the U.S., obviously, as you know, our whole contention about the U.S. market is that it was significantly underdeveloped due to a lack of investment in retail. I think we're proving that to be true. The really strong performance there's now been overall in the market the last couple of years, you have us investing, you have other retailers responding as well, and I think there's good support coming from the brands in terms of supply, recognizing the potential that there is in the U.S. Our view is that the U.S. will outperform the global market, and the potential is clearly there to do it, and it's obviously happening right now. Online in the U.K., clearly we've had great momentum. We already were market leader. We think we've improved that situation further. We invested further behind driving our online business with digital marketing and some traditional marketing, advertising what was available online during lockdown. We really got behind the business, and it's performed very well. The last quarter, Q4, we were three times last year. To your question, post the reopening, we've actually continued to show year-on-year growth, which we weren't expecting. It's obviously reasonably recent, but our expectation was in store opening that we would peg down a bit on the level of online that we were doing. So far, it's not the case. Certainly, there's been a permanent improvement in the online business overall for us and an acceleration of a trend that was already there. The U.S., we only just really got going online last September, October. It's gone well. We have a great line-up of brands. We're putting marketing behind it. We have a credit provider, good technology. We're making really good week-to-week progress, and we're looking to increase our marketing behind that business because we see it's having big potential. Thank you very much. Thank you, Anne-Laure. Our next question is from Guido Lucarelli of BNP Paribas. Guido, please proceed with your question. Yes, good morning. Thanks for taking my questions. The first one is on the U.K. sales. I was wondering if you could give us any color on the performance of the U.K. market compared to 2019 in the second part of the quarter when the stores were open. The second one on the U.S., on the American Dream store. I see the release that it's planned for FY 2022. I was wondering if you had more visibility on which quarter should we expect the store to open. The last one on capital allocation, because with net debt decreasing, you seem to be generating more than enough cash for your capital expenditure requirements. I was wondering what the plan there, if we can expect the use for more acquisitions for the expansion in the U.S. or maybe some policy to give cash back to the shareholders. Thank you. Thanks, Guido. We're not sort of tracking by week against 2019, so specifically how we compare to 2019 for the second half of April, I don't have to hand as a statistic. Overall for the quarter, we are performing very well against 2019, and undoubtedly accelerated when the stores reopened in the U.K. If you don't mind, we'll get back to you with that specific later. The American Dream, we love the project, the American Dream. We think it's going to be a big success. It's largely open in terms of fun park and some retail. There's quite a lot of investment and preparation that's already been done on the luxury side of things. Our current plan is that we would be open at the earliest for the holiday season this year. There's been a lot of real changes in the timing of all this, but that's our latest plan that we would hopefully be open for the holiday season in the U.S., so open by October, November. It's not then, and it would be just after the year-end, but it's part of our fiscal year, and it's a project that we feel very good about. Capital allocation. In terms of capital allocation, obviously, we talked of as you've seen with low debt, so some great headroom. Obviously we are growth interested, and we are in the pursuit for acquisition targets, as we haven't made any secret of that. We think that at this point in time, the best way to use the capital is to grow the business at the moment. We are obviously spending capital. As you've seen, we guided up. We didn't achieve our capital objective for this year because there was a slippage of some of the projects, as Brian pointed out. Capital next year is a bit up on this year, obviously, as a result. For now, we're going to keep the cash, and we're going to see how we can use it for - growth. Great. Thank you very much. Thank you, Guido. Our next question is from Louise Singlehurst of Goldman Sachs. Louise, your line is open. Please go ahead. Hi, morning, everyone. Thanks very much. Two questions from me, if I may. Going back to the cash position, the cash conversion and the better-than-expected net debt, obviously lower CapEx this year. Can you talk about the working capital and the inventory dynamics angles and where we are in terms of, obviously, everything's not fairly light. We focus on Rolex, across the rest of the brand portfolio as well by price points in terms of inventory. The real question is how that outlook looks into full year 2022. A follow-up on the U.S., if I may, on the space rollout. Is there any indication you're able to give us in terms of the space component of growth for full year 2022 with the projects that you have talked about? Thank you. Sure. On the working capital then. We've always said that the best way to look at this business is to take 11% of sales and use that as your working capital assumption. Actually, that holds true pretty well as we sit here. Inventory closed down a little bit on last year because obviously we had bought for last year the Easter and so forth, and then the lockdown came. Inventory was actually, as we pointed out last year, quite high at year-end. Inventory in this category, we don't have a problem with it. We look at it as an asset rather than a liability, which is quite unusual for retail, but it tends to appreciate in value. The composition of our stock is really good. I wish I had a bit more of some of the brands actually, like Rolex and Patek Philippe specifically. Obviously that is somewhat supply constrained, but the inventory is in really good shape actually. Don't think that we need to worry about that area. I'd just add to that we bought confidently as well in anticipation of maintaining a good level of business during the lockdown and clearly having a significant step-up when our stores opened, which I think has proved to have been a wise move overall. The U.S., we've listed the projects that we are looking at. You have the American Dream, you have Aventura, which has been delayed. We have other projects of investment in the malls network investment in the big Rolex store in one. None of them are actual space increases, but they're significant elevations from which, as we know, we've always had a very positive impact on sales overall. We actually do have a number to save space. We will be adding some monobrand, as we did successfully last year. Eight monobrand. We'll have a similar program t his year, that's additional. As you know, critically, they're a lot smaller than our big flagship stores. Our existing network, investing in it as progressively as we can, plus the other projects that we talked about, like the American Dream that's on the RNS. Brilliant. Thank you very much. All right. No worries, folks. Thank you, Louise. Our next question is from Kate Calvert from Investec. Kate, please go ahead. Morning, everyone. I'll join everyone else with a couple. Just on the net debt position, can you confirm whether you've actually repaid the furlough at that point, or is that to come out, and were there any outstanding rents? In terms of the Mayors conversion plan, could you sort of confirm roughly how many Mayors stores you plan to convert in FY 2022? My third question is just on price increases. I don't think Rolex has put one through in the last year. I may be wrong on that. Could you confirm when they last put one through and or have they put one through in the U.S. and not in the U.K.? We know the furlough money has not yet been repaid. We're going through the detail, and we'll pay it in the first quarter of this year for sure. That obviously is a benefit. In addition to that, as I mentioned, we didn't spend all the capital that we had originally planned. We came in more like GBP 24 million of CapEx for the year. There is a push into the first quarter of some of the capital that has been delayed as a result of supply disruptions due to the pandemic. That's where we are on that. In terms of pricing, we haven't had any notification on pricing so far this year. Obviously that is not within our control. We haven't included any assumptions of pricing in our guidance. We'll see where that all ends up. For now, we haven't heard anything in that respect. You could think there should be pressure on it given the price of gold and sort of where the dollar is going and the strengthening of the Swiss franc. So far we haven't seen anything. On the refurb program. We are already in construction for the big Rolex store in Wynn in Vegas. Aventura, we mentioned should have been finished by now, but due to problems to do with the pandemic, things have been delayed. That hasn't reopened, but hopefully will do in the summertime. The balance of the Mayors network we have scheduled to do over fiscal 2022 and 2023, but it will all be done during that time. We've got a nugget schedule with Rolex in particular. We've had inevitably some movement in dates for these projects. We are literally doing them as quickly as we can. We have the capital. We know the results we get from them. We're doing them all as fast as we practically can. As Anders said earlier, that results in us having an increase in CapEx for next year for the carry into the year, plus hopefully doing everything that we've got scheduled. Okay, great. Thanks so much. Thank you, Kate. As a reminder, ladies and gentlemen, if you would like to ask a question, please press star followed by one on your telephone keypad. Our next question comes from Flavio Cereda-Manduca of UBS Asset Management. Flavio, your line is open. Please go ahead. Morning, guys. A quick couple of questions about the U.S. really. Looking at the sort of split in sales, I'm just wondering whether you're looking at a very similar profile to the U.K. There's quite a big dominance there towards the luxury watch brands. Would Rolex be stronger or weaker out in the U.S. compared to the U.K.? Following on from that, in terms of how you approach the sort of store opening program, would you approach something like Vegas different from the New York store? Clearly, you've got a bigger resident population in New York and a more transient population in Vegas. I'm just wondering how that fits in with ordering luxury watch brands, which can take six months, a year to turn up. I'd like to hear what your approach is there and how you're thinking about this going forward really. Thank you. Okay. Flavio, Rolex has historically and remains a bigger proportion of the business in the U.S. than it is in the U.K. Having said that, what's really encouraging about the performance this year in the U.S. is it is very broad-based across all of the major watch brands. We also had a positive experience actually in jewelry. We relaunched the team over there did a great campaign to relaunch Mayors jewelry at the start of the calendar year and have had very positive results from that. That's encouraging. As applied to boards, obviously Rolex in particular have a supply constraint. Other brands who are less supply constrained, we've had very positive growth with. Our view is that the market overall is significantly underdeveloped and I think applies to all the major brands that they represent overall. With regards to is Vegas different from New York or Florida? Yes, it is. We merchandise a major store like that, very specifically towards the clientele that we have. Physically, it's inside a resort as opposed to Soho being on a street side. It's a very significant flagship store for us and Rolex that we're opening. It's a fair weave. It's a beautiful design that we're doing. It's a 3,000-foot store slightly bigger, and will reopen in October. It's adjacent to our multi-brand store that contains Patek and Breguet, Blancpain, Jaeger, IWC, Panerai, Hublot, a really wonderful selection of products. We also have clients who really look for differentiating high-end products or brands like Jacob & Co. or Bovet they've sold well in Vegas, where they have clearly some wealthy regular visitors that come through. As there are, I think the same in Vegas, it's not that we're constantly dealing with a changing traffic. There's a lot of people who go to Vegas very regularly, in many cases, several times a year. They feel as local as a local would do in New York. We do merchandise all of our major segments or major stores independently in anticipation of the clientele. Okay. Thank you. You're welcome. Thank you, Flavio. We have a question from Richard Taylor from Barclays. Richard, please go ahead. Yeah, morning. Quick follow-up on furlough. I know you've just said you'll repay the cash in Q1. Is that expense to the members for the year just gone or is that for the next financial year? Are there any other government support schemes that you've repaid that we need to be aware of? Thanks. Obviously we've accrued 100% of the furlough back into the P&L, so we haven't taken any benefit of that into the numbers of this year. It's just a cash transaction. That's the first one. The second one, we haven't been charged the tax for real estate here in the U.K. throughout the year. Obviously, we haven't volunteered to pay it. We've taken that benefit through because obviously we weren't charged rates. That is part of the benefit that we've had this year in the U.K. That obviously we expect to normalize in next year, well, this year, I should say. Obviously, therefore, we've guided towards a flat to marginal improved EBITDA ratio next year because we don't expect that to continue. Thanks. The total furlough that was disclosed at the interims at GBP 3.3, is that the final number? The total furlough that we were eligible for was GBP 6.8 million. That's the amount that you wouldn't get expensed through the accounts? Yeah. It's not gone through as a benefit, let's call it that. It's cash that we've received, but we haven't put in a P&L thing because we're repaying it. GBP 6.8 million. Yeah. You've not taken any of that benefit. Versus your previous guidance when you talked about margins being up by 1.5% to 2%, whatever it was. That would've assumed some benefit from furlough. Is that correct? Now you're saying you are no longer taking that benefit. No, what we said in the guidance was that we were going to repay the GBP 3.3 million that we received in the first half. That was disclosed in the half year. Then we said subject to no major disruption, we will evaluate what we'll do with furlough for the balance of the year. Given our underlying performance, we've decided that we shouldn't take it. Since the half year, there has been no furlough benefit in our P&L? No. Yeah. Okay. Thank you. Including any guidance that we gave then. Yeah. Thanks, Richard. Sorry, Richard, just on that, what is additional that we put in obviously was a contribution to the Foundation, which wasn't there previously, and GBP 1.5 million is booked in fiscal year 2021 and GBP 1.5 million is committed for fiscal year 2022. Thank you. Thank you, Richard. We have a further question from Kate Calvert of Investec. Your line is open, Kate. Please go ahead. Hi. I've just got a couple. Just coming back to Richard's question on furlough. In terms of the cash you've got to repay for furlough, is it the GBP 3.3 or the GBP 6.8? The 6.8. 6.8. Just a couple of others. CapEx guidance for FY 2022, obviously some of the CapEx has shifted into next year and you're going to start the Goldsmiths renovation as well. What sort of level- Yeah. Obviously, as I mentioned, we came out at about GBP 24 million of CapEx. We got GBP 6 million of carrying capital, which is part of our guidance for next year. If you take that out, it's not that different from what we had guided for this year. A little bit of a step up. Obviously, we're now saying GBP 40 million-GBP 45 million, of which GBP 6 million is a roll forward from this year. Okay. In terms of the Goldsmiths new format you're going to start rolling out, how many do you think you might be able to do in the current year? Four. Four. Perfect. Thank you. Thanks so much. Thank you, Kate. As a reminder, ladies and gentlemen, if you do wish to ask any further questions, please press star followed by one on your telephone keypad now. We currently have no further questions registered. I will hand back to Brian. Thanks, Simona. Again, just thanks everybody for joining us. We're glad to have that year of such change and uncertainty behind us. I really believe that we've optimized the challenging situation to drive the results that we announced this morning. I think our model is clearly proven to be successful and competitively advantaged. We're carrying a positive momentum into FY 2022 on many fronts. I think we've enhanced our relationship with our brand partners. We've had great support from our teams who have just been fantastic, more and more awareness with the public out there, more and more business getting developed through referral, which is wonderful to see. We go into this year feeling confident. We think market conditions overall are going to be positive as they currently are now, U.K. and U.S., and we're very well positioned to take advantage of it. I appreciate you all joining us, and appreciate your support for investing in our business. I look forward to seeing you July 8th. We'll have a further update on our final results, and we'll also then give our view of what the next few years could look like in terms of strategic goals. I look forward to talking to you then. Thank you. Ladies and gentlemen, this concludes today's call. Thank you for joining. Have a great rest of your day. You may now disconnect your lines.