REG - Watches of Switzlnd. - FY26 Trading Update

Watches of SwitzerlandAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260514:nRSN2363Ea&default-theme=true

RNS Number : 2363E  Watches of Switzerland Group PLC  14 May 2026

14 May 2026

 

Watches of Switzerland Group PLC

FY26 Trading Update

for the 53 weeks to 3 May 2026

 

Record Group revenue in FY26, driven by US

FY27 growth outlook underpinned by sales momentum and improving profitability

 

 

Brian Duffy, Chief Executive Officer, said:

 

"FY26 marks another year of record revenue performance, up 13% in constant
currency(1) to £1.8 billion, with growth accelerating across the business and
strong underlying momentum as we continue to scale. FY26 Adjusted EBIT is
expected to be £152 - £155 million, ahead of previous guidance. I would like
to thank my colleagues for their continued commitment to delivering
exceptional client service, which remains central to our success.

 

"The US continues to be the primary engine of growth, with revenue up 24% in
constant currency to $1.24 billion and now accounts for over half of Group
sales. This is a major milestone in the world's largest and fastest growing
luxury watch market, achieved in just over eight years from entering the US.
In the UK, performance has improved despite the challenging macroeconomic
backdrop, with resilient demand for luxury watches and jewellery.

 

"Looking ahead, we enter FY27 with confidence and strong momentum, supported
by the strength of our differentiated model, our leading market position, and
the enduring demand across the luxury categories in which we operate. Our
growth pillars across the Group provide a clear runway for further progress,
and with a strong pipeline of showroom projects in both the UK and US,
alongside the recently acquired Deutsch & Deutsch locations, we are well
positioned to build further on our success."

 

FY26 trading update

 

·      Full year Group revenue of £1,828 million, +13% vs prior year in
constant currency (+11% reported)

o  Excluding the FY26 53(rd) week, Group revenue was +11% in constant
currency (+8% reported)

·      Demand for our key luxury brands, particularly products on
Registration of Interest lists, remains strong, outstripping supply in both
the US and UK markets

o  Luxury watch revenue +13% in constant currency

o  Luxury jewellery revenue +18% in constant currency

·      US revenue +24% in constant currency (+18% reported) vs prior
year and now accounts for more than half of the Group revenue and profit

o  US retail revenue +25% in constant currency with broad-based, consistent
sales growth across categories, brands, price points and regions

o  Roberto Coin wholesale division performed strongly at +22% in constant
currency

·      UK revenue +5% vs prior year, with sequential improvement in H2
FY26

o  Strength across luxury watches and pre-owned with improving momentum in
luxury jewellery in the second half of the year

·      FY26 Adjusted EBIT(2) expected to be £152 - £155 million, ahead
of previous guidance reflecting the improved sales performance

·      FY26 Net debt(3) at £57 million, following the acquisition of
Deutsch & Deutsch

 

Strategic progress - continued progression on our growth pillars

 

·      Acquisitions

o  Inorganic growth through acquisition of Deutsch & Deutsch, comprising
four Rolex-anchored showrooms in Texas.  Revenue from acquisition date was
£16 million

·      Luxury branded jewellery

o  Roberto Coin has performed strongly in both retail and wholesale

§ Sales within Mayors network more than doubled following upgraded
shop-in-shop presentation

§ Opened three Roberto Coin mono-brand boutiques in the US; in New York, Las
Vegas and Miami

·      Showroom investment

o  £67 million of expansionary capex invested into developing our
portfolio.  Key showroom projects included:

§ New Watches of Switzerland, Minneapolis

§ Expansions/relocations of 12 showrooms across the US and UK markets

§ New Mappin & Webb luxury jewellery boutique, Manchester

§ New Audemars Piguet House, Manchester operating as a joint venture

·      Pre-owned

o  Group pre-owned sales grew 22% vs prior year

o  Continued the roll-out of Rolex Certified Pre-Owned in the UK portfolio,
with further expansion within the UK planned

·      Ecommerce

o  Group ecommerce revenue +21% vs prior year in constant currency, with
growth in the established UK market and high levels of growth in the US
following investment in infrastructure

o  Launched the upgraded Hodinkee app to drive client loyalty and ability to
purchase direct from Watches of Switzerland online

 

Outlook

 

FY27 guidance reflects current visibility of supply, pricing and margin from
key brands and confirmed showroom refurbishments, openings and closures, and
excludes uncommitted capital projects and acquisitions.

 

The Group is mindful of the geopolitical environment and will continue to
closely monitor the situation and any wider impact on global consumer
sentiment, but has minimal direct exposure to the Middle East, or tourist
consumers.

 

The Group provides the following FY27 52 week guidance on an organic pre-IFRS
16 basis:

 

 o  Revenue:                        5 - 10% at constant currency
 o  Adjusted EBIT margin %(4):      40 - 80bps expansion from FY26
 o  Capex:                          £60 - £70 million
 o  Free cash flow conversion(5):   c.70%

The equivalent guidance on an IFRS 16 basis is:

 o  Adjusted EBIT margin %:   40 - 80bps expansion from FY26

The Group is exposed to movements in the £/$ exchange rate when translating
the results of its US operations into Sterling. The actual average exchange
rate for FY26 was $1.34.

 

The Group plans to announce FY26 results on 14 July 2026 alongside a broader
update on our growth strategy.

 

FY26 Revenue Performance by Geography

 
                            FY26         FY25            FY26 vs FY25
                            53 weeks to  52 weeks to     Reported YoY

                            3 May 2026   27 Apr 2025     %             Constant currency YoY %

 (£ million)                             (Restated)(6)

 UK                         901          861             +5%           +5%
 Europe                     -            5               -             -
 UK & Europe total          901          866             +4%           +4%
 US retail                  811          681             +19%          +25%
 US Roberto Coin wholesale  126          110             +16%          +22%
 Intercompany eliminations  (10)         (5)             -             -
 US total                   927          786             +18%          +24%
 Group Revenue              1,828        1,652           +11%          +13%

 
FY26 Revenue Performance by Category
 
                   FY26         FY25            FY26 v FY25
                   53 weeks to  52 weeks to     Reported YoY

                   3 May 2026   27 Apr 2025     %             Constant currency YoY %

 (£ million)                    (Restated)(7)
 Luxury watches    1,500        1,365           +10%          +13%
 Luxury jewellery  240          211             +14%          +18%
 Services/other    88           76              +15%          +17%
 Group Revenue     1,828        1,652           +11%          +13%

 

FY26 Revenue by Period

 

                            H1 FY26                                              H2 FY26
                            26 weeks to   Reported YoY%  Constant currency YoY%  27 weeks to  Reported YoY%  Constant currency YoY%

                            26 Oct 2025                                          3 May 2026

 (£ million)

 UK                         436           +2%            +2%                     465          +7%            +7%
 Europe                     -             -              -                       -            -              -
 UK & Europe total          436           +2%            +2%                     465          +6%            +6%
 US retail                  355           +16%           +21%                    456          +21%           +28%
 US Roberto Coin wholesale  56            +12%           +16%                    70           +19%           +25%
 Intercompany eliminations  (2)           -              -                       (8)          -              -
 US total                   409           +15%           +20%                    518          +21%           +27%
 Group Revenue              845           +8%            +10%                    983          +14%           +17%

 

 

The financial information contained herein is unaudited

Ecommerce revenue are sales which are transacted online

Certain financial data within this announcement has been rounded. Growth rates
are calculated on unrounded numbers

( )

(1)Constant currency give results for the period had the exchange rates
remained constant from the comparative period

(2)Adjusted EBIT is operating profit before exceptional items and IFRS 16

(3)Net debt is total borrowings (excluding capitalised transaction costs) less
cash and cash equivalents and excludes IFRS 16 lease liabilities

(4)Adjusted EBIT margin % is Adjusted EBIT divided by revenue shown as a
percentage

(5)Free cash flow conversion is cash flow shown on a pre-IFRS 16 basis
excluding expansionary capex, acquisitions of subsidiaries, exceptional items,
financing activities and the purchase of own shares divided by Adjusted
EBITDA.  Adjusted EBITDA is Adjusted EBIT before depreciation and
amortisation

(6)In FY26 disclosures have been presented to show all US direct-to-consumer
sales, including ecommerce, within the US retail segment.  FY25 comparatives
have been re-presented to allow for comparison

(7)In FY26 the Group has reclassified the sales of certain watch brands from
Services/other into Luxury watches. FY25 comparatives have been re-presented
to allow for comparison

 

FY26 Trading Update Conference Call

 

A conference call for analysts and investors will be held at 8.30am (UK time)
today. To join the call, please use the following details:

 

Webcast details:

https://brrmedia.news/WOSG_Q4_2026 (https://brrmedia.news/WOSG_Q4_2026)

 

Conference call dial-in details:

United Kingdom: +44 (0) 33 0551 0200

United Kingdom (Toll-Free): 0808 109 0700

United States: +1 786 697 3501

United States (Toll-Free): 866 580 3963

Password: Watches of Switzerland Q4

 

Contacts
 The Watches of Switzerland Group
 Anders Romberg, CFO                                                             +44 (0) 207 317 4600
 Caroline Browne, Group Finance and Investor Relations Director                  +44 (0) 116 281 7420
 investor.relations@thewosgroup.com (mailto:investor.relations@thewosgroup.com)

 Headland
 Lucy Legh / Rob Walker / Scarlett Hateley                                       +44 (0) 203 805 4822
 wos@headlandconsultancy.com (mailto:wos@headlandconsultancy.com)

 
About the Watches of Switzerland Group
 

The Watches of Switzerland Group is the UK's largest luxury watch retailer,
operating in the UK and US comprising eight prestigious brands; Watches of
Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US),
Betteridge (US), Deutsch & Deutsch (US), Analog:Shift (US) and Hodinkee
(US), with a complementary jewellery offering. The Group also owns the
exclusive distribution rights for Roberto Coin in the US, Canada, Central
America and the Caribbean.

 

As at 3 May 2026, the Watches of Switzerland Group had 191 showrooms across
the UK and US including 81 dedicated mono-brand boutiques in partnership with
Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand Seiko, Roberto
Coin, BVLGARI and FOPE and has a leading presence in Heathrow Airport with
representation in Terminals 3, 4 and 5 as well as seven retail websites.

 

The Watches of Switzerland Group is proud to be the UK's largest retailer for
Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.

www.thewosgroupplc.com (http://www.thewosgroupplc.com)

 

Disclaimer
 

This announcement has been prepared by Watches of Switzerland Group PLC (the
'Company'). It includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "anticipates", "expects", "intends", "plans", "goal",
"target", "aim", "may", "will", "would", "could" or "should" or, in each case,
their negative or other variations or comparable terminology. They appear in a
number of places throughout this announcement and the information incorporated
by reference into this announcement and may include statements regarding the
intentions, beliefs or current expectations of the Company Directors or the
Group concerning, amongst other things: (i) future capital expenditures,
expenses, revenues, earnings, synergies, economic performance, indebtedness,
financial condition, dividend policy, losses and future prospects; (ii)
business and management strategies, the expansion and growth of the Group's
business operations; and (iii) the effects of government regulation and
industry changes on the business of the Company or the Group.

 

By their nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future and may be beyond the Company's ability to control or
predict. Forward-looking statements are not guarantees of future performance.
The Group's actual results of operations, financial condition, liquidity, and
the development of the industry in which it operates may differ materially
from the impression created by the forward-looking statements contained in
this announcement and/or the information incorporated by reference into this
announcement.

 

Any forward-looking statements made by or on behalf of the Company or the
Group speak only as of the date they are made and are based upon the knowledge
and information available to the Directors on the date of this announcement,
and are subject to risks relating to future events, other risks, uncertainties
and assumptions relating to the Company's operations and growth strategy, and
a number of factors that could cause actual results and developments to differ
materially from those expressed or implied by the forward-looking statements.
Undue reliance should not be placed on any forward-looking statements and,
except as required by law or regulation, the Company undertakes no obligation
to update these forward-looking statements. No statement in this announcement
should be construed as a profit forecast or profit estimate.

 

Before making any investment decision in relation to the Company you should
specifically consider the factors identified in this document, in addition to
the risk factors that may affect the Company or the Group's operations as
detailed above.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEAPSDFEAKEFA



            Copyright 2019 Regulatory News Service, all rights reserved