Watches of Switzerland H1 revenue up 15% to £974m
Watches of Switzerland Group has reported first half revenue of £974 million, up 15% on both a constant currency and reported basis, with adjusted EBIT growth of around 28%.
In the 26 weeks to 1 November, US revenue rose by 22% at constant currency to £501 million as trade was boosted by the acquisition of Deutsch & Deutsch.
Subscribe to TRBUK revenue grew by 9% to £473 million against an improving market backdrop. The group said the growth was broad based with good momentum in flagship boutiques and many regional cities.
Luxury jewellery sales climbed by 19% at constant currency, ahead of luxury watches at 15%, with showrooms putting in a standout performance with jewellery sales up 31%.
For the first half, the group expects to post first half adjusted EBIT of £87 million to £89 million, with EBIT margin up 80 to 100 basis points.
In addition, it has narrowed its FY27 guidance to revenue growth of 7% to 10% at constant currency from a previous guidance of 5% to 10%.
Brian Duffy, chief executive of Watches of Switzerland Group, said: “We have delivered a strong first half performance, with group revenue up 15%, despite an unsettled macroeconomic backdrop.
“This reflects the strength of our market position, the quality of execution from our teams, and enduring demand for luxury watches and jewellery.”
Looking ahead, he said: “We enter the second half well positioned for the full year, having finished the first half slightly ahead of our expectations. We remain mindful of ongoing macroeconomic uncertainty and continue to plan prudently as we head towards the holiday season.
“Nevertheless, this performance gives us confidence to narrow our FY27 guidance towards the upper end of our range. We remain on track to deliver another year of strong revenue growth, alongside a return to EBIT margin expansion.”
