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Watches of Switzerland Group PLC on Tuesday reported double-digit revenue growth and expressed confidence in its long-term prospects, highlighting the ‘major opportunity’ presented by the US. The Leicester, England-based watch and jewellery retailer’s pretax profit was £133.5 million for the year or 53 weeks ended May 3, up 76% from £75.9 million for the previous year, which comprised 52 weeks. Watches of Switzerland cited lower exceptional costs for the latest year. These included a £9.9 million exceptional impairment of assets with a £2.3 million reversal, down from £46.5 million and no reversal. For revenue, Watches of Switzerland reported a ‘record’ £1.83 billion, up 11% or 13% at constant currency from £1.65 billion. US revenue rose 18% to £927.2 million, and UK & Europe revenue grew 4% to £900.7 million. Adjusted earnings before interest and tax rose 3.4%, or 6% at CER, to £154.8 million from £149.7 million. Free cash flow jumped 65% to £162 million from £98 million. ‘Financial 2026 was a year of strong execution against a complex operating backdrop,’ said Chief Executive Officer Brian Duffy, who added that the firm ‘delivered a clear step-up in financial performance’. ‘This was all achieved while navigating tariff-driven price and margin changes in the US and continued pressure on consumers in the UK,’ Duffy continued. ‘This performance is testament to the agility of our business model, our strong relationships with brands and the strength of our teams, who have executed well. ‘We have prioritised our highest-return opportunities, investing in our showroom estate and digital capabilities, driving productivity and broadening our client proposition.’ Watches of Switzerland said its guidance for financial 2027 is unchanged from mid-May, when it forecast revenue growth of 5% to 10% at constant currency, and a return to adjusted Ebit margin expansion with growth of 40 to 80 basis points. The firm said trading for the first ten weeks ‘has been encouraging,’ although it remains ‘mindful of the geopolitical environment’. ‘We see a substantial runway for long-term growth, in both revenue and profit,’ Duffy commented. ‘The US represents a major opportunity, with considerable potential for further growth and market share gains. ‘In our home market, the UK, the trading backdrop is showing encouraging signs of improvement...With a leading position in the UK, a strengthening presence in the US, long-standing brand partnerships and a clear pipeline of opportunities, we are well placed for the next phase of profitable growth.’ Watches of Switzerland shares were 0.7% higher at 754.50 pence in London on Tuesday morning. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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