Watches of Switzerland Group (LSE: WOSG) has dramatically strengthened its balance sheet, cutting net debt to just £24 million from £112 million a year earlier, a reduction of £88 million.
The luxury watch and jewellery retailer achieved the feat in the 26 weeks to 1 November 2026, a period that also delivered a 15% jump in group revenue to £974 million.
Adjusted earnings before interest and tax are projected to climb approximately 28% for the half, landing between £87 million and £89 million.
The adjusted EBIT margin is set to widen by between 0.8 and 1.0 percentage points, a gain the company attributed to operating leverage across its retail estate.
America was the standout growth engine, with US revenue climbing 22% at constant currency to £501 million, partly reflecting the contribution of the Deutsch and Deutsch acquisition.
The domestic business also held its own, with UK revenue advancing 9% to £473 million, driven by gains across flagship boutiques, regional cities, luxury jewellery, and Certified Pre-Owned sales.
Jewellery proved the fastest-growing category, with luxury jewellery revenue rising 19% at constant currency, outpacing the 15% growth recorded in luxury watches.
Showroom sales of luxury jewellery were particularly striking, surging 31%, while wholesale revenue from Roberto Coin jewellery increased 15% at constant currency over the same period.
The group also took its Roberto Coin wholesale strategy a step further, opening its first two shop-in-shops with wholesale partners during October.
Given the stronger-than-expected performance, management tightened its full-year revenue growth forecast to a range of 7% to 10% at constant currency, lifting the floor from a previous 5% lower bound.
The company also raised its full-year adjusted EBIT margin expansion guidance to between 0.6 and 0.8 percentage points, up from a prior floor of 0.4 percentage points.
Peel Hunt maintained its ‘hold’ rating and 725p price target on WOSG, but acknowledged the results carried a constructive tone, noting that consensus forecasts were likely to edge higher following the improved full-year guidance.
The broker pointed to stronger sales across both geographies, better operational gearing, and the group’s overall shift toward the upper end of its forecast ranges as key positives supporting the view.
Management was candid about the road ahead, warning that the second half would feature lower revenue growth and more moderate margin expansion, partly because it contains one fewer trading week than the prior year.
The Deutsch and Deutsch acquisition will also be annualised in January, removing a tailwind that boosted US comparatives in the first half.
Despite the caution, the company said trading momentum remained solid in both markets as it moved into the critical holiday selling season, while flagging that it would continue planning prudently given broader macroeconomic uncertainty.
Investors will get a fuller picture when the group publishes its complete first-half results on 10 December.
