Watches of Switzerland Shares Gain; US Demand Robust, UK Resilient

Watches of Switzerland (LON: WOSG) shares are up around 0.8% on Thursday, experiencing some volatility after the retailer reported a strong first half, supported by robust U.S. demand and resilient UK trading amid tougher market conditions.

Group revenue rose 10 percent at constant currency to £845 million for the 26 weeks to 26 October, with the U.S. continuing to drive performance. 

Sales in the region increased 20 percent at constant currency to £409 million, helped by broad-based growth across brands and categories. 

The U.S. now accounts for almost 60 percent of Group Adjusted EBIT, which rose 6 percent at constant currency to £69 million.

Chief executive Brian Duffy said the group had delivered a “strong first half,” adding that the reduction in U.S. tariffs on Swiss imports, now set at 15 percent, down from 39 percent, was a “positive development for the sector.”

In the UK, revenue rose 2 percent to £436 million, or 5 percent when adjusted for showroom closures. 

The group said trading remained resilient, supported by the stability of the luxury watch market and strong performances at flagship boutiques, including its Rolex store on Old Bond Street, which continues to “outperform expectations.”

Luxury watches remained the group’s core driver, generating £708 million of revenue, while luxury jewellery accounted for 12 percent of group sales. E-commerce revenue rose 17 percent at constant currency, with investment continuing across the U.S. and U.K. platforms.

Free cash flow rose 71 percent to £48 million, while net debt improved to £112 million.The company reiterated its full-year guidance, saying the second half had “started well” and that it was well positioned heading into the holiday trading period. It expects 6% – 10% constant-currency revenue growth in FY26, with an adjusted EBIT margin flat to -100 bps compared to the prior year.