Watches of Switzerland revenue and profits surge ahead of festive trading

Watches of Switzerland has reported a surge in its revenues and profits for the 26 weeks to 26 October 2025 (H1 FY26), and said it is “well positioned” to enter the holiday trading period. 

The group reported a 6% increase in adjusted EBITDA  to £69m, while group revenues rose by 10% to £845m. 

Adjusted EBIT margin dipped slightly to 8.1%, -30 bps vs prior year reflecting changes in gross margin rates and product mix. However, statutory profit before tax increased 50% to £61m.

Regionally, between the UK and US, US made up 59% of Group Adjusted EBIT and 48% of Group revenue. 

Total US revenues rose 20% to £409m, while adjusted EBIT for the region increased 16% to £40.6m. The US adjusted EBIT margin improved slightly to 9.9%.

The group said it recorded broad-based growth across brands and price points in the US.

Meanwhile, in the UK, revenues increased 2% to £436m. Adjusted EBIT fell 11% to £30.8m, with margin down one percentage point to 7.1%. 

The company cited resilient trading in a challenging retail environment, supported by stronger performance at flagship stores, including the Rolex boutique on Old Bond Street, and higher UK ecommerce revenue.

Across the group, luxury watch demand remained strong, supported by continued growth in registration-of-interest lists. 

Luxury jewellery accounted for 12% of revenue, boosted by branded ranges. Roberto Coin wholesale sales were up 16% following new product launches and advertising activity.

Certified pre-owned also continued to perform well. Rolex Certified Pre-Owned is now available in all US Rolex agencies, with expansion to remaining UK agencies under way. 

Group e-commerce revenue rose 17% in constant currency. The business also completed its exit from the European market during the period.

Looking ahead, Watches of Switzerland said trading at the start of the second half was in line with expectations and welcomed the recent reduction of US tariffs on Swiss imports to 15% from 39%. 

It reiterated full-year guidance, forecasting revenue growth of 6% to 10% and adjusted EBIT margin flat to -100 basis points compared with the prior year.

Brian Duffy, chief executive officer, said:  “We have delivered a strong first half, with group revenue up 10% in constant currency, and good levels of  profitability with group adjusted EBIT of £69m, up 6%, along with strong free cash flow and return on  capital employed. 

“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. 

He added: “We welcome the recent reduction in US tariffs on Swiss imports, which is a positive development for the sector. The second half of the year has started well. Trading is in line with expectations, and we are well placed as we  enter 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.”