Watches of Switzerland Reports Strong H1 FY26 Performance, Driven by US Growth

Watches of Switzerland (LON: WOSG) has announced a robust first half for fiscal year 2026, with revenue up 10% in constant currency.

The luxury watch retailer reiterated its full-year guidance, buoyed by growth in the US market.

Group revenue reached £845 million, an increase of 8% at reported rates compared to £785 million in H1 FY25. Demand for luxury watches continues to outstrip supply, fueling consistent growth in client registration of interest lists.

Luxury watch revenue increased by 10% in constant currency, while luxury jewelry revenue also saw a 10% rise, now accounting for 12% of Group revenue.

The Certified Pre-Owned segment continues to perform strongly, aligning with expectations. Rolex Certified Pre-Owned, now the company’s second-largest brand, is available in all US Rolex agencies, with plans to expand into the remaining UK agencies.

Group e-commerce revenue also experienced significant growth, up 16% year-over-year. Adjusted EBIT is estimated between £66-68 million, with EBIT margin % down approximately 50 bps versus the prior year, in line with full year guidance.

Shareholder value is underpinned by the company's strategic investments in showrooms and digital platforms, particularly in the high-growth US market. The expansion of the pre-owned watch segment and the increasing contribution of luxury jewelry further diversify revenue streams, reducing reliance solely on luxury watch sales.

Brian Duffy, Chief Executive Officer, stated: “We have delivered a strong first half, with Group revenue up 10% in constant currency, showing continued momentum across the Group reflecting the strength of our business model, disciplined strategy execution, and improved market trends.”

US revenue reached £409 million, a 15% increase at reported rates and 20% at constant currency compared to the previous year. This growth was fueled by sustained demand across various brands and price points. Roberto Coin Inc. wholesale sales increased by 16% in constant currency.

The company is also focused on driving US e-commerce growth, including the successful re-platforming of the Watches of Switzerland US e-commerce site. The additional 39% tariff on Swiss imports, in place since August 7, 2025, is being closely monitored, with no significant change to consumer behavior observed to date.

UK revenue stood at £436 million, a 2% increase year-over-year, or 5% when adjusted for showroom closures. The UK business demonstrated resilience despite a challenging retail environment, with strong performance across flagship boutiques, including the Rolex Old Bond Street location.

Showroom closures impacted UK sales by 3%, as part of an ongoing focus on increasing returns. The exit of the European business is now complete.

Despite economic and geopolitical uncertainties, the company is reiterating its FY26 guidance, based on current US tariff rates and brand partner/consumer responses.

The Group will announce H1 FY26 results on December 4, 2025.