Watches of Switzerland Group (WOSG) H2 2026 earnings summary

Executive summary

• FY 2026 revenue reached GBP 1.828 billion, up 13% in constant currency, with H2 growth accelerating to 17%; the U.S. surpassed the U.K. as the largest market, now representing over 51% of group sales and 62% of adjusted EBIT.

• Adjusted EBIT grew 6% in constant currency to GBP 155 million, with statutory PBT up 75–76% year-over-year to GBP 133 million.

• Major investments included GBP 66 million in showroom upgrades and the acquisition of Deutsch & Deutsch in Texas.

• Pre-owned sales grew 22% and ecommerce revenue increased 21% year-over-year; luxury jewelry segments, including Roberto Coin, saw robust growth.

• Strong execution despite headwinds from tariffs, gold pricing, margin changes, and consumer pressure in the U.K.

Financial highlights

• Revenue of GBP 1.828 billion, up 13% in constant currency year-over-year; U.S. sales up 24%, U.K. and Europe up 4–5%.

• Adjusted EBIT of GBP 155 million (+6% constant currency), margin at 8.5% (down 60 bps), impacted by margin pressure and a GBP 3.5 million bad debt write-off.

• Statutory PBT of GBP 133 million, up 75–76% year-over-year.

• Free cash flow of GBP 162 million, cash conversion at 80%.

• Net debt reduced to GBP 56–57 million; net debt/EBITDA leverage at 0.3x.

Outlook and guidance

• FY 2027 guidance: revenue growth of 5–10% in constant currency, adjusted EBIT margin to expand by 40–80 bps.

• Capital expenditure planned at GBP 60–70 million.

• Trading in the first 10 weeks of FY 2027 is ahead of guidance, with strong U.S. momentum and normalized U.K. growth.

• Guidance based on 52-week trading period and confirmed showroom projects; excludes uncommitted projects and acquisitions.

• Management remains confident in delivering strong revenue growth and EBIT margin expansion.