Watches of Switzerland boosted by ‘robust’ US growth
Watches of Switzerland Group has posted an increase in first half revenue and profit after a particularly strong performance in the US.
In the six months to 26 October, group revenue climbed by 8%, or 10% at constant currency, to £845 million including an uplift of 15% in the US. However, growth in the UK and Europe was more modest at 2%.
Meanwhile, adjusted EBITDA rose by 4% to £91 million as pre-tax profit climbed to £61 million from £41 million a year earlier.
The group benefited from continued strong demand for luxury watches and a good performance in its luxury branded jewellery category in the period.
Brian Duffy, the group’s chief executive officer, said: “We have delivered a strong first half, with group revenue up 10% in constant currency, and good levels of profitability with group adjusted EBIT of £69 million, up 6%, along with strong free cash flow and return on capital employed.
“The US remains the key driver of our performance, with robust demand across brands and categories, and the region now makes up almost 60% of our profitability.”
Watches of Switzerland said it has made a good start to its second half with trading in line with expectations. It has welcomed the recent reduction in US tariffs on Swiss imports.
Duffy added: “We are well placed as we enter the holiday trading period. Whilst we remain mindful of the external economic and geopolitical environment, we are confident in the strength of our business and our differentiated offering, and have reiterated our FY26 guidance.”
