Watches of Switzerland Group lifts annual outlook as H1 sales climb 15 percent

The Watches of Switzerland Group (WOSG) has tightened its full-year fiscal 2027 guidance following a 15 percent rise in constant-currency group revenue to 974 million pounds sterling for the first half ended November 1, 2026. The Leicester-headquartered luxury specialist reported substantial operating leverage across its key territories, with adjusted EBIT rising approximately 28 percent to between 87 million and 89 million pounds, compared to 66 million pounds in the prior-year period.

The group's performance was underpinned by robust demand in the United States, which generated 501 million pounds in revenue—up 22 percent at constant exchange rates. U.S. retail sales advanced 24 percent, buoyed by organic gains alongside the retail integration of Texas-based jeweler Deutsch & Deutsch, acquired earlier this year. In the domestic UK market, revenue climbed 9 percent to 473 million pounds, signaling steady footfall across regional nodes and London flagship boutiques despite broader domestic discretionary pressures. Category-wise, luxury watches advanced 15 percent, while luxury jewelry grew 19 percent, led by a 31 percent surge in branded retail jewelry.

Operating cash generation significantly deleveraged the business, trimming net debt to 24 million pounds down from 112 million pounds reported at the equivalent half-year point in 2025. Group Chief Executive Officer Brian Duffy noted that performance reflected the structural endurance of tier-one watch brand partnerships and targeted execution, emphasizing that revenue gains are translating into higher margin quality and cash returns. Chief Financial Officer Anders Romberg added that the capital flexibility positions the group to continue strategic showroom investments and footprint expansion.

On the back of the first-half trading momentum, WOSG raised the lower bound of its constant-currency revenue guidance for the full year 2027 to between 7 percent and 10 percent (previously 5 percent to 10 percent). The retailer also narrowed its adjusted EBIT margin expansion target to 60 to 80 basis points, supported by stronger inventory turns and retail productivity.

While management flagged tighter second-half comparables and the impact of one fewer trading week against the previous fiscal year, the group maintained an upbeat assessment heading into the pivotal holiday quarter. The Watches of Switzerland Group is scheduled to publish its comprehensive, audited H1 FY27 financial results in December.