Watches of Switzerland Group raised the top end of its FY27 guidance range on Tuesday, pointing to constant-currency revenue growth of 7-10%, up from a previous 5-10% range, after first-half revenue climbed 15% to £974m.
The London-listed luxury watch and jewellery retailer, which operates showrooms and ecommerce platforms across the UK and US, also narrowed its adjusted EBIT margin expansion guidance to 60-80 basis points, up from 40-80 basis points previously.
Adjusted EBIT for the 26 weeks to 1 November is expected at £87m to £89m, implying growth of about 28% year-on-year, with margin expansion of 80-100 basis points.
Net debt fell to £24m at the half-year end, down from £112m a year earlier, which the group attributed to strong cash generation.
US revenue rose 22% in constant currency to £501m, with retail sales up 24% including what the group called a good contribution from its acquisition of Deutsch & Deutsch, the four Rolex-anchored Texas showrooms it bought during FY26. Roberto Coin wholesale sales in the US grew 15% in constant currency, and the group opened its first two wholesale partner shop-in-shops in October.
UK revenue rose 9% to £473m, which chief executive Brian Duffy described as broad-based growth with strong momentum in flagship boutiques and across regional cities.
By category, luxury jewellery outperformed with growth of 19% in constant currency, ahead of luxury watches at 15%; within showrooms specifically, luxury jewellery grew 31% in constant currency.
"We have delivered a strong first half performance, with Group revenue up 15%, despite an unsettled macroeconomic backdrop," Duffy said, adding that the result came in "slightly ahead" of the company's expectations.
Read more about Watches of Switzerland
- 14/07/26Watches of Switzerland posts record £1.8bn revenue, confirms FY27 outlook
- 15/05/26Watches of Switzerland sees earnings ahead of prior guidance on record revenue
The group flagged that second-half growth is likely to be lower than the first half's, citing one fewer trading week year-on-year and the January anniversary of the Deutsch & Deutsch acquisition, which will no longer contribute incremental growth once annualised.
Free cash flow conversion guidance was kept unchanged at approximately 70%, and capital expenditure guidance remains £60m to £70m.
The group completed showroom expansion projects in Marlton, New Jersey and Avalon, Georgia in the US, and in the UK finished an expansion of its Rolex Glasgow boutique alongside three Goldsmiths refurbishments in Watford, Chelmsford and Exeter.
Watches of Switzerland Group will announce its H1 FY27 results on 10 December.