Watches of Switzerland Results Show U.S. Surge

Watches of Switzerland results showed record FY26 revenue and profit as strong U.S. demand made the U.S. the group's largest market. The company reiterated FY27 guidance for revenue growth and adjusted-margin expansion.

Record FY26 Results and Guidance

Watches of Switzerland Group PLC (WOSG/WOSGF) is a luxury watch and jewelry retailer selling brands including Rolex and TAG Heuer, operating in the United States, the United Kingdom, and Europe. Its FY26 results cover the 53 weeks ended May 3, 2026.

The group reported record revenue of £1,828 million, up 11% year-on-year on a reported basis and 13% in constant currency. Statutory profit before tax rose about 75% to £133 million. Adjusted operating profit reached £155 million, and adjusted earnings per share increased 9% to 45.2 pence, with both profit and sales exceeding analyst expectations.

Margins showed some pressure. The reported net margin declined 70 basis points to 35.6%, and the adjusted EBIT margin contracted by roughly 60 basis points. Management attributed this to U.S. tariffs, higher gold prices, and product mix.

For FY27, the company reiterated guidance for 5%–10% constant-currency revenue growth and adjusted EBIT margin expansion of 40–80 basis points. Capital expenditure is expected to be £60–70 million, with free-cash-flow conversion targeted around 70%. Management described trading in the first ten weeks of FY27 as encouraging, with strong momentum carried into the new year.

U.S. Momentum and Strategic Outlook

U.S. sales drove the year’s growth. Revenue in the United States reached £927 million, rising about 24%–25% in constant currency from the prior year. The U.S. overtook the U.K. as the group’s largest market, accounting for more than half of group revenue for the first time.

Growth was broad-based, supported by underlying demand, showroom investments, and contributions from recent acquisitions, including the Roberto Coin jewelry business and a four-month consolidation of D&D. Pre-owned watch sales increased 22% year-on-year, while wholesale revenue rose about 22% in constant currency.

Trading in the U.K. and Europe improved over the year. U.K. revenue grew 5% to £901 million, and U.K. and Europe revenue rose about 4% in constant currency. Second-half group revenue growth accelerated to 17% despite a subdued consumer environment.

The group has held talks with potential bidders about a possible take-private transaction, which has fueled investor interest. No formal offer, binding proposal, or regulatory filing has been reported.

Management described the results as evidence of a substantial runway for long-term profitable growth. Priorities include continued U.S. expansion, growth in pre-owned watches and luxury jewelry, e-commerce development, and selective acquisitions.