Watches of Switzerland Reports Record FY26 Revenue and Maintains Positive FY27 Guidance (WOSG)

Watches of Switzerland Group (LSE:WOSG) delivered record revenue for FY26, with sales rising 13% at constant currency to £1.83 billion as continued growth in the United States helped offset a resilient but more mature UK market.

The luxury watch and jewellery retailer said the US now accounts for more than half of both group revenue and profit, reflecting the success of its long-term expansion strategy. Adjusted EBIT increased 6% on a constant-currency basis despite margin pressures arising from US tariffs and pricing changes introduced by major watch brands.

Strong free cash flow enabled the company to reduce net debt during the year, even after completing the acquisition of Deutsch & Deutsch and returning £25 million to shareholders through a share buyback programme.

Management reaffirmed its guidance for FY27, forecasting revenue growth of between 5% and 10% at constant currency together with a return to EBIT margin expansion. The company said trading at the start of the new financial year has been encouraging, supported by continued momentum in the US and improving market conditions in the UK.

Looking ahead, Watches of Switzerland plans to continue investing in new showroom openings across the US, selected flagship locations in the UK, its ecommerce platform, the pre-owned watch market and luxury jewellery. Capital expenditure is expected to remain broadly unchanged, while disciplined cost management and selective share buybacks are intended to support long-term profitable growth.

The company’s outlook is underpinned by solid financial performance, strong cash generation and positive management guidance. While technical indicators remain favourable, elevated relative strength levels suggest the shares may be approaching overbought territory. A relatively modest price-to-earnings ratio also provides valuation support despite ongoing margin pressures.

About Watches of Switzerland Group PLC

Watches of Switzerland Group PLC is a leading retailer of luxury watches and jewellery with a network of showrooms across the UK and the United States, supported by a growing ecommerce business. The company represents premium brands including Rolex and Roberto Coin while expanding its presence in pre-owned luxury watches and branded jewellery to broaden its customer offering and diversify revenue streams.