Watches of Switzerland Group PLC (LSE:WOSG) saw its shares rise 4.9% on Thursday after reporting a strong first-half performance for fiscal 2026, fueled by exceptional growth in the U.S. market. Group revenue reached £845 million for the six months, representing a 10% increase at constant currency and topping analyst expectations of £825 million. U.S. sales were the standout contributor, surging 20% in constant currency—double market forecasts—while UK revenue rose 2% amid a “challenging retail environment.”
Adjusted EBIT is expected to come in between £66 million and £68 million, slightly below consensus of £68.3 million, with operating margins approximately 50 basis points lower year-on-year. Chief Executive Officer Brian Duffy said, “We have delivered a strong first half, with group revenue up 10% in constant currency, showing continued momentum across the business, disciplined execution, and improved market trends.”
Despite the introduction of a 39% tariff on Swiss watch imports to the U.S. since August 7, Watches of Switzerland reaffirmed its full-year guidance for constant currency sales growth between 6% and 10%, noting no significant shift in consumer behavior. Luxury watch sales grew 10% at constant currency, while luxury jewelry rose by the same percentage and now accounts for 12% of total revenue. E-commerce sales were also strong, up 16% year-on-year.
The group continues to invest in its retail network, completing several flagship refurbishments and opening new boutiques during the first half, with additional high-profile store launches planned for the second half of the fiscal year. “While we remain mindful of ongoing economic and geopolitical uncertainties, including the impact of U.S. tariffs, we are confident in delivering another year of strong growth and in consolidating our leadership in luxury watch and jewelry retailing,” Duffy added.
More about Watches of Switzerland Group PLC
Watches of Switzerland Group PLC is a leading luxury watch and jewelry retailer with operations in the UK, U.S., and Europe. The company represents major Swiss brands including Rolex, Patek Philippe, and Omega, offering both in-store and online experiences. Through continued investment in digital innovation and high-end retail spaces, the group aims to strengthen its position as a global leader in the luxury timepiece and jewelry sector.
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