Watches of Switzerland Group FY27 Outlook Update
Watches of Switzerland Group announced that revenue for the 26 weeks ended 1 November, representing the first half of fiscal 2027, reached £974 million, a 15% increase on both a reported and constant‑currency basis. Adjusted EBIT for the period grew 28% year‑on‑year. U.S. revenue amounted to £501 million, up 24% on a constant‑currency basis and reflecting the contribution from the recent acquisition of Deutsch & Deutsch, while U.K. revenue totaled £473 million, up 9% constant‑currency, driven by strong performance at flagship boutiques and regional city stores.
The company narrowed its full‑year fiscal 2027 guidance, now forecasting revenue growth of 7% to 10% on a constant‑currency basis, up from the prior range of 5% to 10%. Correspondingly, the EBIT margin expansion outlook was raised to a range of 60 to 80 basis points, compared with the earlier 40 to 80 basis points. First‑half adjusted EBIT is expected to lie between £87 million and £89 million, implying an EBIT margin expansion of 80 to 100 basis points versus the prior year.
Luxury jewellery sales grew 19% on a constant‑currency basis and luxury watch sales increased 15%; showroom‑specific luxury jewellery performance was even stronger, expanding 31% on a constant‑currency basis. Net debt stood at £24 million as of 1 November, a substantial reduction from £112 million recorded a year earlier.
CEO Brian Duffy commented that the group delivered a strong first‑half performance with revenue up 15% despite an unsettled macroeconomic backdrop, and that this performance gives confidence to target the upper end of the revised FY27 guidance.