Watches of Switzerland marginally beats FY26 revenue estimates, maintains FY27 guidance
Watches of Switzerland marginally beats FY26 revenue estimates, maintains FY27 guidance
Overview
UK luxury watch retailer's FY26 revenue grew 11%, slightly beating analyst expectations
Adjusted EBIT for FY26 beat consensus, driven by strong US performance and acquisitions
Company completed £25 mln share buyback and reduced net debt during FY26
Outlook
Company expects FY27 revenue growth of 5-10% at constant currency
Watches of Switzerland sees FY27 adjusted EBIT margin expanding by 40-80bps from FY26
Company maintains FY27 guidance, citing encouraging start and improving UK trading conditions
Result Drivers
US GROWTH & ACQUISITIONS - Revenue growth was led by strong US performance, including organic growth, showroom investment and the acquisition of Deutsch & Deutsch, per CEO Brian Duffy
PRE-OWNED & LUXURY JEWELLERY - Growth in pre-owned watches and luxury jewellery contributed to results, with pre-owned sales up 22% and luxury jewellery up 17% year-on-year
MARGIN PRESSURE - Adjusted EBIT margin declined due to brand margin rate adjustments, product mix, investment in US ecommerce and a one-off debtor write-down
Company press release: ID:nRSN1694Ma
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
FY Revenue | Slight Beat* | GBP 1.83 bln | GBP 1.82 bln (10 Analysts) |
FY Adjusted EBITDA | Beat | GBP 202 mln | GBP 199.91 mln (7 Analysts) |
FY Adjusted EBIT | Beat | GBP 155 mln | GBP 152.43 mln (6 Analysts) |
FY Adjusted EBITDA Margin |
| 11.10% |
|
FY Pretax Profit |
| GBP 133 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for Watches of Switzerland Group PLC is GBp740.00, about 1.3% below its July 13 closing price of GBp749.50
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 10 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)