Watches of Switzerland Group, the UK and US retailer of luxury watches and jewellery, reported record revenue of £1.83 billion for the 53 weeks to 3 May, up 11% year-on-year (13% in constant currency).
Adjusted EBIT rose 6% in constant currency to £155 million, though the margin slipped 60 basis points to 8.5% on brand margin adjustments, US ecommerce investment and a one-off Roberto Coin debtor write-down.
Statutory profit before tax jumped 76% to £133 million, reflecting lower exceptional costs, while free cash flow more than doubled to £162 million.
Net debt fell to £57 million from £96 million, even after the group funded its acquisition of Deutsch & Deutsch.
US revenue climbed 24% in constant currency to £927 million, now accounting for more than half of group revenue and profit, while UK revenue grew 5% to £901 million.
"Trading in the first ten weeks has been encouraging," chief executive Brian Duffy said, adding that the group has carried good US momentum into the new year alongside encouraging signs of UK improvement.
For FY27, the group guides to organic revenue growth of 5% to 10% at constant currency, Adjusted EBIT margin expansion of 40 to 80 basis points, and capital expenditure of £60 million to £70 million.
