Watches of Switzerland delivers H1 revenues increase of 10 percent

The Watches of Switzerland Group PLC announced a strong first-half performance for fiscal year 2026, delivering 10 percent growth in Group revenue at constant currency to 845 million pounds, with statutory profit before tax surging 50 percent to 61 million pounds.

The primary engine of this growth was the robust U.S. market, where revenue jumped 20 percent (constant currency) to 409 million pounds, now contributing nearly 60 percent of the Group's Adjusted EBIT, which increased 6 percent to 69 million pounds.

CEO Brian Duffy noted that demand for luxury watches remains strong, consistently exceeding supply, while the UK & Europe segment showed resilient trading, with sales up 5 percent when adjusting for showroom closures. Strategic initiatives, including the Certified Pre-Owned Rolex program now rolling out across all U.S. agencies and the successful integration of Roberto Coin, are driving momentum, evidenced by the jewellery brand's wholesale sales climbing 16 percent in constant currency.

Operational efficiencies led to a 71 percent increase in Free Cash Flow to 48 million pounds, improving return on capital employed to 17.3 percent, and the company welcomed the reduction of U.S. tariffs on Swiss imports from 39 percent to 15 percent.

With the second half starting well and trading in line with expectations, the Group remains confident and has reiterated its full-year FY26 guidance for 6 percent to 10 percent constant currency revenue growth.