Watches of Switzerland hails strong US performance as H1 revenue rises

(Sharecast News) - Watches of Switzerland rallied on Thursday as it reported a jump in first-half revenue, hailing a particularly strong performance in the US. In a trading update for the 26 weeks to 26 October, the company said group revenue rose 10% from the same period a year earlier at constant currency to £845m.

It said demand for luxury watches remains robust and continues to exceed supply. Luxury watches and luxury jewellery revenue both rose 10% at constant currency.

In the US, revenue grew 20% at constant currency, or 15% on a reported basis, to £409m, with sustained growth in the core business, "reflecting the success of our model and strength of client demand".

In the UK, revenue was up 2% at £436m. The company said this was a "good performance in a challenging retail environment".

It pointed to strong momentum across flagship boutiques, with Rolex Old Bond Street outperforming and positive trading across recent investment projects.

WOSG expects first-half adjusted earnings before interest and tax of between £66m and £68m, with the EBIT margin down around 50 basis points on the prior year and in line with full-year guidance.

Chief executive Brian Duffy said: "The US has been the standout performer, with sales up 20% in constant currency, driven by broad-based growth across brands and categories throughout the period. Investments in our teams, showrooms and digital offer are driving growth, while Roberto Coin is delivering excellent results as we implement our growth acceleration strategy in the first full year of ownership.

"We delivered strong momentum in the first half of the year and are well placed for the Holiday trading period. While we remain cognisant of economic and geopolitical uncertainties in the second half, including the impact of US tariffs, we are confident in delivering another year of strong sales growth and continued progress in consolidating our leadership in luxury watch and jewellery retailing. We are reiterating our FY26 guidance for the full year."

At 0915 GMT, the shares were up 5.5% at 411.60p.