Watches of Switzerland income and income surge forward of festive buying and selling

Watches of Switzerland has reported a surge in its revenues and income for the 26 weeks to 26 October 2025 (H1 FY26), and mentioned it’s “effectively positioned” to enter the vacation buying and selling interval. 

The group reported a 6% improve in adjusted EBITDA  to £69m, whereas group revenues rose by 10% to £845m. 

Adjusted EBIT margin dipped barely to eight.1%, -30 bps vs prior 12 months reflecting modifications in gross margin charges and product combine. Nonetheless, statutory revenue earlier than tax elevated 50% to £61m.

Regionally, between the UK and US, US made up 59% of Group Adjusted EBIT and 48% of Group income. 

Complete US revenues rose 20% to £409m, whereas adjusted EBIT for the area elevated 16% to £40.6m. The US adjusted EBIT margin improved barely to 9.9%.

The group mentioned it recorded broad-based progress throughout manufacturers and worth factors within the US.

In the meantime, within the UK, revenues elevated 2% to £436m. Adjusted EBIT fell 11% to £30.8m, with margin down one proportion level to 7.1%. 

The corporate cited resilient buying and selling in a difficult retail surroundings, supported by stronger efficiency at flagship shops, together with the Rolex boutique on Outdated Bond Avenue, and better UK ecommerce income.

Throughout the group, luxurious watch demand remained sturdy, supported by continued progress in registration-of-interest lists. 

Luxurious jewelry accounted for 12% of income, boosted by branded ranges. Roberto Coin wholesale gross sales had been up 16% following new product launches and promoting exercise.

Licensed pre-owned additionally continued to carry out effectively. Rolex Licensed Pre-Owned is now out there in all US Rolex businesses, with growth to remaining UK businesses below approach. 

Group e-commerce income rose 17% in fixed foreign money. The enterprise additionally accomplished its exit from the European market through the interval.

Trying forward, Watches of Switzerland mentioned buying and selling initially of the second half was in keeping with expectations and welcomed the current discount of US tariffs on Swiss imports to fifteen% from 39%. 

It reiterated full-year steerage, forecasting income progress of 6% to 10% and adjusted EBIT margin flat to -100 foundation factors in contrast with the prior 12 months.

Brian Duffy, chief government officer, mentioned:  “We’ve delivered a powerful first half, with group income up 10% in fixed foreign money, and good ranges of  profitability with group adjusted EBIT of £69m, up 6%, together with sturdy free money circulation and return on  capital employed. 

“The US stays the important thing driver of our efficiency, with sturdy demand throughout manufacturers and classes, and the  area now makes up virtually 60% of our profitability. One 12 months in, we’re much more excited concerning the scale of  the chance for Roberto Coin and Hodinkee. Within the UK, buying and selling has been resilient in a difficult market,  underpinned by the soundness of the luxurious watch phase and the energy of our shopper proposition, with  specific success at our flagship boutiques. 

He added: “We welcome the current discount in US tariffs on Swiss imports, which is a constructive improvement for the sector. The second half of the 12 months has began effectively. Buying and selling is in keeping with expectations, and we’re effectively positioned as we  enter the Vacation buying and selling interval. While we stay aware of the exterior financial and geopolitical  surroundings, we’re assured within the energy of our enterprise and our differentiated providing, and have  reiterated our FY26 steerage.”