Watches of Switzerland Shares Climb as Record Revenue and Profit Beat Expectations

The Watches of Switzerland Group (LON: WOSG) share price has risen over 1% on Tuesday morning after the luxury retailer posted record annual results and reaffirmed a confident outlook for the year ahead, despite a challenging trading backdrop on both sides of the Atlantic.

The FTSE 250 group reported full-year revenue of £1.83 billion for the 53 weeks to 3 May 2026, up 11% year-on-year (13% at constant currency), as the US business continued to outperform, now accounting for more than half of Group revenue and profit.

Adjusted EBIT rose 6% at constant currency to £155 million, while statutory pre-tax profit surged 76% to £133 million, helped by a sharp reduction in exceptional costs.

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Investors appeared encouraged by a marked improvement in cash generation, with free cash flow climbing 65% to £162 million and conversion jumping to 80% from 51% a year earlier. Net debt fell to £57 million from £96 million, even after funding the acquisition of Texas-based Deutsch & Deutsch.

Chief Executive Brian Duffy highlighted “strong execution against a complex operating backdrop,” pointing to tariff-driven pricing pressures in the US and a subdued UK consumer environment.

Nonetheless, the group said trading in the first ten weeks of FY27 had been “encouraging,” with guidance unchanged: 5-10% constant-currency revenue growth and 40-80bps of Adjusted EBIT margin expansion.

Growth in the US remained the standout feature, with revenue up 24% in constant currency, driven by strong demand, showroom investment, and progress in integrating Roberto Coin and Deutsch & Deutsch.

UK revenue rose a more modest 5%, though management noted “encouraging signs” of improving domestic demand.

The results appear to have reassured the market that WOSG can sustain growth momentum while managing cost pressures from tariffs and gold prices, prompting the stock’s rise in early trading.

On Monday, it was reported that WOSG had held talks over potential offers to take the company private.