Watches of Switzerland Group (LSE: WOSG) has reported record full-year revenue for FY26, with sales climbing 13% at constant currency to reach £1.83 billion.
The luxury watch and jewellery retailer attributed much of its success to a standout performance in the United States, which delivered revenue growth of 24% at constant currency to $1.24 billion.
For the first time, the US overtook the UK to become the group’s largest market, accounting for more than half of both group revenue and profit.
UK revenue rose 5% during the year, with management describing the domestic market as resilient but more mature compared to the rapidly expanding American operation.
Adjusted EBIT increased 6% on a constant-currency basis, despite margin pressures stemming from US tariffs and pricing changes introduced by major watch brands.
Statutory profit before tax surged 76% to £133 million, as exceptional charges normalised following the prior year’s impairment-heavy comparative that included £57.7 million in charges.
Adjusted earnings per share came in at 45.2 pence, representing a 9% increase on the prior year and underlining the group’s continued progress on profitability.
Strong free cash flow allowed the company to reduce net debt during the period, even after completing the acquisition of Deutsch and Deutsch and returning £25 million to shareholders through a share buyback programme.
Management reaffirmed guidance for FY27, forecasting revenue growth of between 5% and 10% at constant currency alongside 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 United States and improving conditions in the UK market.
Looking ahead, Watches of Switzerland plans to continue investing in new showroom openings across the US and selected flagship locations in the UK, as well as its ecommerce platform and the pre-owned watch market.
Capital expenditure is expected to remain broadly unchanged, while disciplined cost management and selective share buybacks are intended to support long-term profitable growth for the group.
Watches of Switzerland Group represents premium brands including Rolex and Roberto Coin, while also expanding its presence in pre-owned luxury watches and branded jewellery to diversify revenue streams.
