Watches of Switzerland has raised its full-year guidance after a strong first half, with group revenue up 15% to £974 million in the 26 weeks to 1 November 2026.

The luxury watch retailer, which runs 185 showrooms across the UK and US, said revenue rose 15% on both a reported and constant-currency basis, from £845 million a year earlier, beating the £941 million consensus forecast cited by Bank of America.

Adjusted earnings before interest and tax for the half year are expected at between £87 million and £89 million, implying growth of about 28% year on year, with margin expansion of 80 to 100 basis points.

US sales lead the growth

The United States was the main driver of growth, generating £501 million of revenue, up 22% at constant exchange rates. The group said it delivered strong revenue and profit growth in both its US and UK markets.

Chief executive Brian Duffy said: “We have delivered a strong first half performance, with group revenue up 15%, despite an unsettled macroeconomic backdrop.”

Strong cash generation cut net debt to £24 million at the half-year end, down from £112 million a year earlier. The group said it finished the first half slightly ahead of its own expectations.

Guidance raised for the full year

On the back of the first-half performance, the group raised the lower end of its full-year guidance. It now expects constant-currency revenue growth of 7% to 10% for the year to April 2027, up from 5% to 10% previously, and adjusted EBIT margin expansion of 60 to 80 basis points, up from 40 to 80 basis points.

Capital expenditure guidance is unchanged at £60 million to £70 million, with free cash flow conversion expected at about 70%.

The group cautioned that second-half growth is likely to be lower than in the first half, because the second half contains one fewer trading week than a year ago and because the Deutsch & Deutsch acquisition will be annualised in January, so it will no longer add incremental growth.

Shares slip despite the update

Despite the strong update, Watches of Switzerland shares turned lower during Tuesday’s session in London, as the wider market gave up its early gains after hotter-than-expected US inflation data.

Duffy said the group entered the second half well positioned for the full year but remained mindful of ongoing macroeconomic uncertainty and continued to plan prudently heading into the holiday season.

“This performance gives us confidence to narrow our FY27 guidance towards the upper end of our range,” he said. “We remain on track to deliver another year of strong revenue growth, alongside a return to EBIT margin expansion.”

The group will publish its full first-half results on 10 December 2026.