Watches of Switzerland Group PLC (LSE:WOSG) delivered adjusted earnings at the top end of its upgraded guidance range, as the luxury watch retailer published its full-year annual results.
The company reported revenue rising 11% to £1.8 billion in the 53 weeks to 3 May, reflecting solid demand across its core markets despite a challenging consumer backdrop.
Statutory profit before tax climbed to £133 million from £76 million in the prior year, representing a significant improvement in bottom-line performance across the period.
Operating profit rose 3% to £155 million, matching the top end of the £152-155 million guidance range the company had provided back in May.
Free cash flow surged 65% to £162 million, while net debt fell to £57 million from £96 million, even after the company completed its acquisition of Deutsch and Deutsch.
The FTSE 250-listed retailer also confirmed its outlook for the current financial year, targeting revenue growth of 5-10% alongside adjusted EBIT margin expansion of 40-80 basis points.
Trading across the first ten weeks of the new financial year was described as “encouraging”, with continued momentum in the US and signs of improving conditions in the UK.
Chief executive Brian Duffy said “[Financial 2026] was a year of strong execution against a complex operating backdrop”, referencing US tariff-driven pricing changes and weaker UK consumer demand while the company continued investing in showrooms, ecommerce and new growth categories.
Duffy added: “Our focus in FY27 is to build on this performance, continuing to elevate the client experience through our Xenia programme, drawing on the success of Rolex Old Bond Street, whilst maintaining cost and capital discipline and investing where we see the greatest long-term returns.”
The results arrived a day after a Reuters report stated that WoS had held discussions in recent months over potential offers to take the company private, though the company declined to comment on that report.
A £25 million share buyback programme was completed in June 2025, with a further £13 million in shares purchased during the 2026 financial year, and the company said future buybacks would be considered “selectively” when cash generation exceeded business needs.
The results paint a picture of a business navigating macro headwinds with discipline, emerging with stronger cash flows, reduced debt, and cautious optimism heading into the year ahead.
