REG - Watches of Switzlnd. - H1 FY26 Trading Update

Watches of SwitzerlandAnnouncement

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RNS Number : 3773G  Watches of Switzerland Group PLC  06 November 2025

6 November 2025

 

Watches of Switzerland Group PLC

H1 FY26 Trading Update

for the 26 weeks to 26 October 2025 (H1 FY26)

 

Strong H1 FY26 performance driven by US growth

FY26 guidance reiterated

 

 

Brian Duffy, Chief Executive Officer, said:

"We have delivered a strong first half, with Group revenue up 10% in constant
currency, showing continued momentum across the Group reflecting the strength
of our business model, disciplined strategy execution, and improved market
trends.

 

"The US has been the standout performer, with sales up 20% in constant
currency, driven by broad-based growth across brands and categories throughout
the period. Investments in our teams, showrooms and digital offer are driving
growth, while Roberto Coin is delivering excellent results as we implement our
growth acceleration strategy in the first full year of ownership.

 

"Our UK business performed well despite the challenges facing the UK High
Street, with revenue up 2%. The luxury watch market remains stable and our
results demonstrate the quality of our brand portfolio and our focus on
enhancing showroom productivity and client service. The flagship Rolex
boutique on Old Bond Street, the largest in Europe, continues to exceed
expectations.

 

"We delivered strong momentum in the first half of the year and are well
placed for the Holiday trading period. While we remain cognisant of economic
and geopolitical uncertainties in the second half, including the impact of US
tariffs, we are confident in delivering another year of strong sales growth
and continued progress in consolidating our leadership in luxury watch and
jewellery retailing. We are reiterating our FY26 guidance for the full year."

 

H1 FY26 Trading Update

 

Group revenue £845 million, +10% at constant currency, +8% at reported rates
(H1 FY25: £785 million)

·     Demand for luxury watches remains robust and continues to exceed
supply, with consistent additions to and conversions of the client
Registration of Interest lists

·     Luxury watches revenue +10% at constant currency

·     Luxury jewellery revenue +10% at constant currency, making up 12% of
Group revenue. Luxury branded jewellery outperforming

·     Certified Pre-Owned continues to perform strongly and in line with
expectations and we are firmly established in this market. Rolex Certified
Pre-Owned, our second biggest brand, is now in all US Rolex agencies. Plans to
expand into remaining UK agencies are in place

·     Group ecommerce revenue is also showing good growth at +16% vs prior
year

·     H1 FY26 Adjusted EBIT between £66-68 million, EBIT margin % c.-50
bps vs prior year in line with full year guidance

 

 

US revenue £409 million, +20% at constant currency, +15% at reported rates vs
prior year

·     Sustained growth in core business, reflecting the success of our
model and strength of client demand

·     Luxury watch sales strong across brands and price points

·     Roberto Coin Inc. wholesale sales +16% in constant currency, +12%
at reported rates. Positive market response to new product and new advertising
campaign. Roberto Coin sales through our retail channel at Mayors are more
than double vs prior year, following the implementation of shop-in-shop
branded displays. Opportunity to roll this concept out to wholesale partners

·     Investment in driving US ecommerce, including successful
re-platforming of Watches of Switzerland US ecommerce site

·     Additional 39% tariff in place since 7 August 2025 on landed cost
of Swiss imports. We understand negotiations between governments are still
taking place. We are closely monitoring tariff developments and brand
responses. To date we have not seen any significant change to consumer
behaviour

 

UK(1) revenue £436 million, +2% vs prior year, +5% adjusting for showroom
closures

·     Good performance in a challenging retail environment. Strong
momentum across flagship boutiques, with Rolex Old Bond Street outperforming
and positive trading across recent investment projects

·     Our ongoing focus on increasing returns led to optimising our UK
showroom footprint. Showroom closures in last 12 months impacted UK sales by
3%. Exit of the European business now complete

 

Outlook

 

Whilst we are mindful of the uncertain economic and geopolitical backdrop,
with strong momentum in the first half of the year, we are reiterating our
FY26 guidance provided in July 25. This is based on the current US tariff
rates, and our brand partner and consumer responses to those tariffs to date.
We remain confident of delivering another year of strong sales growth and
continued progress in consolidating our leadership in luxury watch and luxury
jewellery retailing.

 

The Group will announce H1 FY26 results on 4 December 2025.

 

Showroom projects and investments

 

We continue to make good progress with our showroom development programme,
with several flagship refurbishments and new boutiques completed in H1 FY26,
and further high-profile openings planned for H2 FY26.

·      Completed in H1 FY26

·      New Audemars Piguet House, Manchester operating as a joint
venture - May 25

·      Refurbishment of Goldsmiths Kingston-Upon-Thames - May 25

·      Refurbishment of Northern Goldsmiths - retailing Rolex since 1919
- July 25

·      Relocation of Mayors Lenox, Atlanta - August 25

·      Expansion of Mappin & Webb Cambridge - August 25

·      Relocation of Goldsmiths Merry Hill, Birmingham - September 25

·      New Mappin & Webb luxury jewellery boutique, Manchester
including De Beers boutique - September 25

·      Relocation of Goldsmiths Peterborough - September 25

·      Exciting pipeline of projects for H2 FY26

·      New Watches of Switzerland Southdale, Minneapolis - Opened 31
October 25

·      Relocation of Mayors Sarasota, Florida - November 25

·      Expansion and conversion of Goldsmiths Oxford - November 25

·      Expansion and conversion of Mappin & Webb Birmingham -
December 25

·      Three new Roberto Coin mono-brand boutiques in New York, Las
Vegas - Q3 FY26

·      Rolex boutique Glasgow currently being expanded, opening in
Summer 26

 

 

 

H1 FY26 Revenue Performance by Geography

 
                            H1 FY26       H1 FY25       H1 FY26 vs H1 FY25
                            26 weeks to   26 weeks to   Reported YoY

                            26 Oct 2025   27 Oct 2024   %             Constant currency YoY %

 (£m)

 UK                         436           426           +2%           +2%
 Europe                     -             4
 UK & Europe total          436           430           +2%           +2%
 US retail                  355           306           +16%          +21%
 US Roberto Coin wholesale  56            50            +12%          +16%
 Intercompany eliminations  (2)           (1)
 US total                   409           355           +15%          +20%
 Group Revenue              845           785           +8%           +10%

 
H1 FY26 Revenue Performance by Category
 
                   H1 FY26       H1 FY25         H1 FY26 v H1 FY25
                   26 weeks to   26 weeks to     Reported YoY

                   26 Oct 2025   27 Oct 2024     %             Constant currency YoY %

 (£m)                            (Restated)(2)
 Luxury watches    708           655             +8%           +10%
 Luxury jewellery  102           95              +6%           +10%
 Services/other    35            35              +1%           +2%
 Group Revenue     845           785             +8%           +10%

 

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)UK revenue excludes revenue from European operations.

(2)In FY26 the Group has reclassified the sales of certain watch brands from
Services/other into Luxury watches. H1 FY25 comparatives have been restated to
allow for comparison.

 

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 seven prestigious brands; Watches of
Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US),
Betteridge (US), Analog:Shift (US) and Hodinkee (US), with a complementary
jewellery offering. Since 8 May 2024, the Group has also owned the exclusive
distribution rights for Roberto Coin in the US, Canada, Central America and
the Caribbean.

 

As at 6 November 2025, the Watches of Switzerland Group had 196 showrooms
across the UK and US including 84 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 2, 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.

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