Watches of Switzerland Group (WOSG) H1 2026 earnings summary

Executive summary

• First half revenue reached £845 million, up 10% at constant currency, driven by 20% US growth and resilient UK performance after adjusting for showroom closures.

• Adjusted EBIT rose 6% year-over-year to £69 million in constant currency, with statutory profit before tax up 50% to £61 million.

• Free cash flow increased 71% to £48 million, and ROCE improved to 17.3%.

• Certified Pre-Owned became the group's second-largest luxury watch brand, with strong e-commerce (up 17%) and luxury branded jewellery growth, especially Roberto Coin (up 16% in US wholesale).

• Disciplined investment in showrooms, digital, and luxury jewellery supported growth, with multiple new boutiques and refurbishments completed.

Financial highlights

• Revenue increased 10% year-over-year in constant currency (8% reported), with US retail up 20% and UK up 5% adjusting for closures.

• Adjusted EBIT margin was 8.1% (-30bps YoY), and Adjusted EBITDA margin was 10.8% (-30bps YoY).

• Adjusted EPS rose 8% to 19.6p; statutory basic EPS increased 57% to 19.1p.

• Free cash flow conversion was 53% for H1, expected to reach 65%-70% for the full year.

• Net debt at £112 million, with net debt/adjusted EBITDA leverage at 0.6x; £25 million share buyback completed.

Outlook and guidance

• Full-year guidance reiterated: 6%-10% revenue growth at constant currency, adjusted EBIT margin flat to down 100bps.

• CapEx expected between £65 million and £70 million for the year.

• Trading in line with expectations; well positioned for the holiday season.