Watches of Switzerland tightens outlook as sales beat forecast

Watches of Switzerland Group PLC on Tuesday raised the lower end of full-year sales guidance after a strong first half, but said it expects revenue growth to slow in the second half of the financial year.

Shares in the Leicester, England-based luxury watch and jewellery retailer were down 2.2% at 729.00 pence each in London on Tuesday.

Watches of Switzerland said revenue rose 15% to £974 million in the 26 weeks ended November 1 from £845 million the year prior, beating £941 million Visible Alpha consensus cited by Bank of America.

UK revenue increased 8.5% to £473 million from £436 million, and US sales by 23% to £501 million from £409 million.

By category, sales of luxury watches increased by 15% and sales of luxury jewellery by 20%.

Chief Executive Brian Duffy said: "We have delivered a strong first half performance, with group revenue up 15%, despite an unsettled macroeconomic backdrop."

"Importantly", this revenue growth is translating into improved profitability and cash generation, he added.

Watches of Switzerland expects to deliver around 28% adjusted earnings before interest and tax growth in the first half of its financial year, with 80 to 100 basis points of adjusted Ebit margin expansion.

In the 26 weeks to October 26, 2025, the firm reported adjusted Ebit of £69 million at a margin of 8.1%.

Duffy said the company enters 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," he added.

He said the performance gives "us confidence" to narrow the FY27 guidance towards the "upper end of our range".

Watches of Switzerland expects 7% to 10% full-year revenue growth at constant currency growth versus 5% to 10% before, and 60 to 80bps Ebit margin expansion against 40 to 80bps previously.

"Our FY27 guidance reflects the fact that the second half contains one fewer trading week year on year and that the group will annualise the acquisition of Deutsch & Deutsch in January. Taken together, these factors mean that we would expect a lower level of revenue growth in the second half than in the first half, alongside more moderate Ebit margin expansion," the firm explained.

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