Watches of Switzerland H1 underpinned by 'robust' US growth

(Sharecast News) - Watches of Switzerland reiterated its full-year guidance on Thursday after a "strong" first half, with revenue and profit higher thanks to "robust" growth in the US. In the 26 weeks to 26 October, group revenue rose 10% at constant currency from the same period a year earlier to £845m, with adjusted earnings before interest and tax 6% higher at £69m and statutory pre-tax profit up 50% to £61m.

Revenue in the UK and Europe rose 2% to £436m, while US revenue jumped 20% to £409m. The US made up 59% of group adjusted EBIT and 48% of group revenue.

Watches of Switzerland said the UK performance was "resilient" in a challenging retail environment, but in the US, there was sustained broad-based growth across brands and price points.

The company said luxury watch demand remained strong, with continued growth in client Registration of Interest lists.

Meanwhile, luxury jewellery represented 12% of group revenue, driven by a strong performance in luxury branded jewellery.

Chief executive Brian Duffy said: "The US remains the key driver of our performance, with robust demand across brands and categories, and the region now makes up almost 60% of our profitability. One year in, we are even more excited about the scale of the opportunity for Roberto Coin and Hodinkee.

"In the UK, trading has been resilient in a challenging market, underpinned by the stability of the luxury watch segment and the strength of our consumer proposition, with particular success at our flagship boutiques.

"We welcome the recent reduction in US tariffs on Swiss imports, which is a positive development for the sector."

Duffy said the second half of the year has started well and trading is in line with expectations, with the group well placed into the holiday trading period.

"Whilst we remain mindful of the external economic and geopolitical environment, we are confident in the strength of our business and our differentiated offering, and have reiterated our FY26 guidance," he said.