Watches of Switzerland Group PLC raised its fiscal 2027 sales forecast after first-half revenue increased 15% at constant currencies, as U.S. sales and jewelry demand strengthened the luxury retailer’s results.
The company now expects full-year revenue to grow 7% to 10% at constant currencies. Its previous forecast was 5% to 10%, so the revision lifts the low end while leaving the high end unchanged. The retailer said first-half trading exceeded its expectations.
First-half revenue totaled £974 million. In the United States, revenue rose 22% at constant currencies to £501 million, with the Deutsch & Deutsch acquisition contributing to retail growth. U.K. revenue increased 9% to £473 million. The United States accounted for slightly more than half of group revenue.
Luxury jewelry sales grew 19% at constant currencies across the group, compared with 15% for luxury watches. Sales of luxury jewelry in the company’s showrooms increased 31% at constant currencies. The retailer also reported faster sales growth at flagship boutiques and in many regional U.K. cities.
Chief Executive Officer Brian Duffy cited the company’s market position, its teams’ execution and demand for luxury watches and jewelry. He said the performance came despite an unsettled economic backdrop. Watches of Switzerland sells brands including Rolex, Cartier and Patek Philippe.
The company expects first-half Adjusted EBIT of £87 million to £89 million. The company-defined measure excludes exceptional items and the effects of IFRS 16. Despite the higher full-year sales forecast, the retailer expects revenue growth to slow in the second half.
The second half has one fewer trading week than the comparable period a year earlier. Beginning in January, the year-earlier figures will also include Deutsch & Deutsch, changing the comparison for growth from the acquisition. Watches of Switzerland plans to report its first-half results on Dec. 10.
