Watches Of Switzerland Group Plc (LON:WOSG) has reported its FY26 Results for the 53 weeks ended 3 May 2026
Brian Duffy, Chief Executive Officer, said:
“FY26 was a year of strong execution against a complex operating backdrop. Revenue grew 11% to £1.8 billion, up 13% in constant currency, and we delivered a clear step-up in financial performance, with Adjusted EBIT of £155 million, up 6% on a constant currency basis, and statutory profit before tax up 76% to £133 million. Strong free cash flow generation supported a further reduction in net debt, reflecting the discipline and momentum in the business.
“This was all achieved while navigating tariff-driven price and margin changes in the US and continued pressure on consumers in the UK. This performance is testament to the agility of our business model, our strong relationships with brands and the strength of our teams, who have executed well. We have prioritised our highest-return opportunities, investing in our showroom estate and digital capabilities, driving productivity and broadening our client proposition. The Deutsch & Deutsch integration is progressing well, Certified Pre-Owned continues to gain traction, Roberto Coin is building momentum, and our ecommerce investment is extending our reach with clients.
“Our focus in FY27 is to build on this performance, continuing to elevate the client experience through our Xenia programme, drawing on the success of Rolex Old Bond Street, whilst maintaining cost and capital discipline and investing where we see the greatest long-term returns. We have made an encouraging start to the year which underpins our confidence in delivering another year of strong revenue growth.
“We see a substantial runway for long-term growth, in both revenue and profit. The US represents a major opportunity, with considerable potential for further growth and market share gains. In our home market, the UK, the trading backdrop is showing encouraging signs of improvement, and I would like to thank our teams across the US and UK for the outstanding service they continue to provide to clients.
“With a leading position in the UK, a strengthening presence in the US, long-standing brand partnerships and a clear pipeline of opportunities, we are well placed for the next phase of profitable growth.”
| £million | 53 weeks ended3 May 2026 | 52 weeksended27 April 2025 | YoY changeReported rates | YoY changeConstant currency1 |
| Group revenue | 1,828 | 1,652 | +11% | +13% |
| USUK | 927901 | 786861 | +18%+5% | +24%+5% |
| Europe | – | 5 | – | – |
| Adjusted EBITDA1 | 202 | 192 | +5% | |
| Adjusted EBITDA margin1 | 11.1% | 11.6% | -50bps | |
| Adjusted EBIT1 | 155 | 150 | +3% | +6% |
| Adjusted EBIT margin1 | 8.5% | 9.1% | -60bps | |
| Adjusted EPS1 (p) | 45.2 | 41.6 | +9% | |
| Operating profit | 170 | 114 | +49% | |
| Statutory profit before tax (PBT) | 133 | 76 | +76% | |
| Statutory basic EPS (p) | 42.6 | 22.8 | +87% | |
| Free cash flow1Free cash flow conversion1 | 16280% | 9851% | +65%+2,900bps | |
| Return On Capital Employed1 | 18.0% | 19.0% | -100bps | |
| Net debt1 | (57) | (96) |
FY26 Financial Highlights
· Group revenue of £1,828 million, +13% vs FY25 in constant currency (+11% reported). Excluding the 53rd week, Group revenue was +11% in constant currency (+8% reported)
o US revenue of £927 million, +24% in constant currency (+18% reported), now accounts for more than half of Group revenue and profit. UK revenue of £901 million +5% vs prior year
· Group Adjusted EBIT of £155 million, +6% in constant currency, +3% reported vs prior year
o Adjusted EBIT margin 8.5%, -60bps YoY (FY25: 9.1%) reflecting brand margin rate adjustments, investment in US ecommerce infrastructure and Group marketing, and a one-off Roberto Coin department store debtor write down
· Statutory PBT of £133 million (FY25: £76 million), +76% vs prior year reflecting a reduction in exceptional costs
· Free cash flow of £162 million (FY25: £98 million) with conversion of 80% (FY25: 51%)
· Net debt of £57 million as at 3 May 2026 (FY25: £96 million), after acquisition of Deutsch & Deutsch
· The Group completed a £25 million share buyback programme in June 2025 with £13 million purchased in FY26
FY27 Outlook
Guidance for FY27 is unchanged from that provided in the Q4 trading update. Trading in the first ten weeks has been encouraging. Whilst we remain mindful of the geopolitical environment, we have carried good US momentum into the new year and see encouraging signs the UK market is improving. This underpins our confidence in delivering another year of strong revenue growth, alongside a return to Adjusted EBIT margin expansion.
As a reminder, the Group has minimal direct exposure to the Middle East or tourist consumers. This guidance reflects our current visibility of supply, pricing and margin from key brands and confirmed showroom refurbishments, openings and closures, and excludes uncommitted capital projects and acquisitions.
The Group provides the following FY27 52 week guidance on an organic pre-IFRS 16 basis:
| o Revenue growth: | 5 – 10% at constant currency |
| o Adjusted EBIT margin %: | 40 – 80bps expansion from FY26 |
| o Capital expenditure: | £60 – £70 million |
| o Free cash flow conversion: | c.70% |
The equivalent guidance on an IFRS 16 basis is:
| o Adjusted EBIT margin %: | 40 – 80bps expansion from FY26 |
The Group is exposed to movements in the £/$ exchange rate when translating the results of its US operations into Sterling. The actual average exchange rate for FY26 was $1.34.
Mid-term priorities; Investing in sustainable profitable growth
· We see substantial opportunity to deliver sustained, profitable growth driven by continued execution against our strategic growth pillars: showroom investment, pre-owned, luxury branded jewellery, ecommerce, acquisitions and client experience
· The US offers significant opportunity for both market share gain and structural market growth, supported by a luxury consumer increasingly allocating discretionary spend to watches and jewellery
o Our showroom network has steadily increased since we entered the market in 2018, reaching 65 locations today. We expect targeted showroom investment and selective acquisitions to support continued expansion, as brands increasingly consolidate towards fewer, higher-quality points of distribution
· In the UK, we maintain a market-leading position in a market where demand remains stable and resilient, underpinned by strong appreciation of luxury watches and jewellery across a broad consumer base
o Over the past two years, we have consolidated our showroom network to focus on higher impact locations, such as Rolex Old Bond Street flagship, and we will continue to invest selectively in a compelling pipeline of projects
· Across both markets, we have strengthened the resilience and diversity of our revenue base over the past three years. Luxury jewellery, pre-owned and ecommerce represent compelling growth avenues. Together these accounted for 24% of Group revenue in FY26 and we expect these categories to continue to outpace overall Group growth
· Continued disciplined cost management will enable our future revenue growth to drive operating leverage, supporting profit growth
· We maintain clear capital allocation priorities, supported by increasing cash generation and a robust balance sheet
o Total capex is expected to remain at £60 – 70 million per year, trending down as a percentage of revenue
o We continue to see an attractive pipeline of showroom investment opportunities and remain well positioned to capitalise on acquisition opportunities that would accelerate our strategic priorities
o The Group will execute share buybacks selectively where cash generation exceeds business requirements, while maintaining a strong and flexible balance sheet
FY26 Revenue Performance by Geography
| FY26 | FY25 | FY26 vs FY25 | ||
| (£ million) | 53 weeks to3 May 2026 | 52 weeks to27 Apr 20254 | Reported YoY% | Constant currency YoY % |
| UK | 901 | 861 | +5% | +5% |
| Europe | – | 5 | – | – |
| UK & Europe total | 901 | 866 | +4% | +4% |
| US retail | 811 | 681 | +19% | +25% |
| US Roberto Coin wholesale | 126 | 110 | +16% | +22% |
| Intercompany eliminations | (10) | (5) | – | – |
| US total | 927 | 786 | +18% | +24% |
| Group Revenue | 1,828 | 1,652 | +11% | +13% |
FY26 Revenue Performance by Category
| FY26 | FY25 | FY26 vs FY25 | ||
| (£ million) | 53 weeks to3 May 2026 | 52 weeks to27 Apr 20255 | Reported YoY% | Constant currency YoY % |
| Luxury watches3 | 1,507 | 1,365 | +10% | +13% |
| Luxury jewellery3 | 238 | 208 | +14% | +18% |
| Services/other | 83 | 79 | +6% | +7% |
| Group Revenue | 1,828 | 1,652 | +11% | +13% |
FY26 Revenue by Period
| H1 FY26 | H2 FY26 | |||||
| (£ million) | 26 weeks to26 Oct 2025 | Reported YoY% | Constant currency YoY% | 27 weeks to3 May 2026 | Reported YoY% | Constant currency YoY% |
| UK | 436 | +2% | +2% | 465 | +7% | +7% |
| Europe | – | – | – | – | – | – |
| UK & Europe total | 436 | +2% | +2% | 465 | +6% | +6% |
| US retail | 355 | +16% | +21% | 456 | +21% | +28% |
| US Roberto Coin wholesale | 56 | +12% | +16% | 70 | +19% | +25% |
| Intercompany eliminations | (2) | – | – | (8) | – | – |
| US total | 409 | +15% | +20% | 518 | +21% | +27% |
| Group Revenue | 845 | +8% | +10% | 983 | +14% | +17% |
Footnote references
1 This is an Alternative Performance Measure and is shown on a pre-IFRS 16 basis. Refer to the Glossary for definition, purpose and reconciliation to statutory measures where relevant
2 Ecommerce sales are sales which are transacted online
3 Refer to the Glossary for definition
4 In FY26 disclosures have been presented to show all US direct-to-consumer sales, including ecommerce, within the US retail segment. FY25 comparatives have been re-presented to allow for comparison
5 In the period, the Group has reclassified the sales of certain goods and services between categories to reflect how results are reported to the Chief Operating Decision Makers. The 52 week period ended 27 April 2025 has been re-presented to allow for comparison. The finalised category split differs slightly from that previously announced on 14 May 2026
Certain financial data within this announcement has been rounded. Growth rates are calculated on unrounded numbers.
