Watches of Switzerland raises its outlook after a 15% rise in half-year sales
The Watches of Switzerland Group, the UK's largest luxury watch retailer, sold £974 million in the first half of its 2027 financial year, 15% more than a year earlier, and narrowed its full-year guidance towards the top of the range: sales are now expected to grow by 7% to 10% at constant currency, against 5% to 10% previously.
The figures, released on 10 November, cover the 26 weeks ended 1 November. The company expects adjusted operating profit of £87 million to £89 million, about 28% higher than a year earlier, and an operating margin improvement of 80 to 100 basis points. Net debt fell from £112 million to £24 million. For the full year, the expected margin improvement is now 60 to 80 basis points, against 40 to 80.
The United States in front
In the United States, sales reached £501 million, up 22% at constant currency. Retail grew 24%, helped by the acquisition of Deutsch & Deutsch, and wholesale sales of Roberto Coin jewellery rose 15%; the brand's first two shop-in-shops at partner stores opened in October. The group also expanded its showrooms in Marlton, New Jersey, and Avalon, Georgia.
In the UK, sales rose 9% to £473 million, with growth in flagship stores and regional cities. Luxury jewellery and certified pre-owned watches performed best. The group expanded the Rolex boutique in Glasgow and refurbished the Goldsmiths stores in Watford, Chelmsford and Exeter. Overall, luxury watches grew 15% and luxury jewellery 19%, at constant currency.
"We have delivered a strong first half performance, with Group revenue up 15%, despite an unsettled macroeconomic backdrop," said Chief Executive Brian Duffy. In his view, the result reflects "the strength of our market position, the quality of execution from our teams, and enduring demand for luxury watches and jewellery". The group expects growth to slow in the second half, which has one fewer trading week and, from January, no longer benefits from comparison with the period before the Deutsch & Deutsch acquisition.
Market reaction
The announcement lifted the sector's shares: according to the Swiss website cash.ch, Swatch Group rose 3% on the Swiss exchange to CHF 36.30, its highest level since late September, and Richemont gained 2.2%. Richemont reports its half-year results on 13 November. Watches of Switzerland publishes its full half-year results on 10 December.
Find out more on the company's website.
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