Watches of Switzerland Group Plc (LON:WOSG) has announced its FY25 Results for the 52 weeks ended 27 April 2025
Record revenue driven by improved H2 trading performance
Continued excellent strategic and operational progress
Brian Duffy, Watches of Switzerland Group Chief Executive Officer, said:“During the year we grew revenue +8% to a record £1,652 million, delivering +16% growth in the US and +2% in the UK, whilst growing Adjusted EBIT1 +12% to £150 million, all at constant currency and in line with market expectations.
“I am proud of the strong performance our team has delivered, underpinned by a significant trading improvement in H2 FY25 with Group revenue +12% vs prior year. Our US business has continued its excellent momentum, surpassing $1 billion revenue for the first time, bolstered by the acquisition of Roberto Coin Inc.. The UK has returned to growth as trading conditions have stabilised. Our performance reflects our differentiated business model, with our scale and leadership in our chosen markets, supported by long-standing, collaborative partnerships with world-leading brands across luxury watches and luxury branded jewellery underpinning sustained growth.
“FY25 was a busy year for the Group as we continued to deliver on our strategy at pace. A notable highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, which is a great example of how we combine our retailing excellence and operational expertise to deliver a fantastic project for our brand partners and clients. We also delivered three key Rolex projects in the US across Texas, Florida and Atlanta, opened a new Patek Philippe room in Connecticut, and executed a range of additional showroom openings, expansions and upgrades.
“We are increasingly excited about the possibilities for our recently acquired Roberto Coin business in North America. Not only has it continued to trade well since acquisition, we see growing potential for this well-recognised brand in the large and growing US luxury branded jewellery market. We are pleased to have launched a marketing campaign featuring Dakota Johnson as a global brand ambassador and expect this and other pipeline projects to underpin our growth ambitions for the brand, including the opening of three mono-brand boutiques.
“We are encouraged by the strong performance of the Rolex Certified Pre-Owned programme in both the UK and US, and by the sustained growth in our pre-owned business more generally. Building on our proven M&A track record, we were delighted to acquire Hodinkee, the leading global digital platform for luxury watch enthusiasts, further strengthening our online leadership.
“As we look ahead, whilst we are of course remaining mindful of the broader macroeconomic and consumer environment, including potential US tariff changes, we remain confident in the strength of our diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories.”
| £million | 52 weeks ended27 April 2025 | 52 weeks ended28 April 2024 | YoY changeReported rates | YoY changeConstant currency1 |
| Group revenue | 1,652 | 1,538 | +7% | +8% |
| USUK and Europe | 786866 | 692846 | +14%+2% | +16%+2% |
| Adjusted EBITDA1 | 192 | 179 | +8% | |
| Adjusted EBITDA margin1 | 11.6% | 11.6% | -bps | |
| Adjusted EBIT1 | 150 | 135 | +11% | +12% |
| Adjusted EBIT margin1 | 9.1% | 8.8% | +30bps | |
| Adjusted EPS1 (p) | 41.6 | 38.0 | +9% | |
| Operating profit | 114 | 120 | -5% | |
| Statutory basic EPS (p) | 22.8 | 25.0 | -9% | |
| Statutory profit before tax | 76 | 92 | -18% | |
| Free cash flow1Free cash flow conversion1 | 9851% | 11866% | -17%-1,500bps | |
| Return On Capital Employed1 | 19.0% | 19.5% | -50bps | |
| Net (debt)/cash1 | (96) | 1 |
FY25 Financial Highlights
· Group revenue of £1,652 million, +8% vs FY24 year in constant currency (+7% reported), in line with market expectations
o Improved second half performance with Group revenue +12% in H2 FY25 vs +4% in H1 FY25 vs prior year (constant currency)
o Luxury watches2 revenue +2% in constant currency, +1% reported
§ Demand for our key brands, particularly products on Registration of Interest lists, remains strong, outstripping supply in both the US and UK markets
§ Certified Pre-Owned and vintage is performing strongly, with Rolex Certified Pre-Owned becoming the Group’s second largest luxury watch brand equivalent
o Luxury jewellery3 revenue +108% in constant currency, +106% reported, driven by the acquisition of Roberto Coin Inc.
§ Luxury branded jewellery delivered double digit growth
· US revenue of £786 million (including Roberto Coin Inc.), +16% at constant currency, +14% reported
o Improvement to +19% in H2 FY25 vs +11% in H1 FY25 (constant currency), following a first half that was impacted by the Q1 increase of showroom stock levels of key brands to enhance displays and client experience
· UK and Europe revenue of £866 million +2% vs prior year
o Sequential revenue improvement H2 FY25 +6%
· Excellent progress with showroom expansion and refurbishment programme
o Expansionary capex4 of £73 million, with four new showrooms opened and 11 showrooms refurbished/expanded
· Group Adjusted EBIT of £150 million, +12% in constant currency, +11% reported vs prior year
o Improvement in adjusted EBIT margin to 9.1% (FY24: 8.8%)
· Operating profit as reported on the face of the Consolidated Income Statement £114 million (FY24: £120 million), -5% on a reported basis
· Free cash flow of £98 million (FY24: £118 million)
· Net debt of £96 million as of 27 April 2025 (28 April 2024 net cash: £1 million), reflecting the acquisitions of Roberto Coin Inc. and Hodinkee business
· On 10 March 2025, the Group launched a share buyback programme of £25 million, in line with our capital allocation policy. £11.3 million of shares were purchased and paid for in FY25, with completion of the programme in June 2025
Operating Highlights
· Significant progress on key showroom projects:
o Opened the new flagship Rolex boutique on Old Bond Street, London, which is trading ahead of our expectations
o Opened a new 2,000 sq ft Patek Philippe room in Betteridge Greenwich, Connecticut
o Introduction of Rolex to Watches of Switzerland Plano, Texas and Mayors Jacksonville, Florida
o Conversion of Mayors Lenox, Atlanta to a Rolex boutique
o Relocation of Mayors Tampa, Florida
o Expansion of Betteridge Vail, Colorado
o New Watches of Switzerland Ross Park, Pittsburgh
o New Mappin & Webb, Edinburgh
o Further six showroom projects in the UK
o Completed the Audemars Piguet AP House, Manchester (opened 6 May 2025) operating as a joint venture
o Progress made on the Mappin & Webb Luxury Jewellery Boutique, Manchester, opening in Autumn 2025
· Integration of Roberto Coin Inc. progressing to plan. Positive feedback from the network of retail partners, with sell-in and sell-out data encouraging
o Strong revenue growth from the Roberto Coin brand within the Group’s US showrooms, particularly following the installation of elevated displays. Working on a shop-in-shop concept for retail partners
o Actively negotiating new mono-brand boutiques in the US, with three leases signed to date
o Plans to increase space in department stores and independent retailers
o Website upgrade in progress
o Launched marketing campaign in May 2025 with Dakota Johnson as global brand ambassador
· Launch of the upgraded Watches of Switzerland US ecommerce website in May 2025, with Mayors and Betteridge sites to follow
· Positive consumer response from new product lines introduced following Watches and Wonders in Geneva
· Hodinkee integration is progressing in line with our expectations
· Accredited as a Great Place To Work® employer in the UK and US, and Living Wage Employer in the UK
Outlook for FY26
As we enter FY26, we are mindful of the uncertain macroeconomic backdrop, geopolitical developments, potential US tariff changes, and their potential impact on consumer confidence. We remain confident in the strong fundamentals of the luxury watch category and our differentiated business model in the underdeveloped US market. We also see significant opportunities in luxury branded jewellery, including our Roberto Coin Inc. growth initiatives.
We are focused on the delivery of our strategy and are encouraged by our strong pipeline of high-quality projects opening in FY26, across both the UK and US, including:
· Mappin & Webb Luxury Jewellery boutique, Manchester
· Audemars Piguet AP House, Manchester (opened 6 May 2025) operating as a joint venture
· Northern Goldsmiths, Newcastle
· New Watches of Switzerland Southdale, Minneapolis
· Relocation of Mayors University Town Center, Florida
· Expansions or relocations of a further six UK showrooms
Guidance:
Our Guidance for the 53 weeks of FY26 (pre-IFRS 16) is based on:
· Current US tariff rate of 10% maintained beyond the 90 day pause
· Currently announced margin changes from brand partners in response to the 10% tariffs remaining in place. As it stands today, the 10% tariff on imported goods from Switzerland has led some of our brand partners to put through mid-single digit price increases in the US, alongside reducing their authorised distribution network’s margin percentage
· Visibility of supply of key brands for calendar year 2025
· No significant changes in tax burden
· Guidance reflects confirmed showroom projects but excludes any uncommitted capital projects or acquisitions
| Constant currency revenue growth | 6% – 10% |
| Adjusted EBIT margin % | Flat to -100 bps vs prior year |
| Capital expenditure | £65 – £70 million |
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 FY25 was $1.28.
The outcome of US tariff developments remains uncertain. We are in regular dialogue with our brand partners, but it is too early to comment on the potential sector impact of further changes. We will provide a further update as to the potential impact on FY26 guidance once the situation becomes clearer.
FY25 revenue performance by geography and category
| H1 FY25 | H2 FY25 | |||||
| (£ million) | 26 weeks to27 Oct 2024 | Reported YoY% | Constant currency YoY% | 26 weeks to27 April 2025 | Reported YoY% | Constant currency YoY% |
| UK and Europe | 430 | -1% | -1% | 436 | +6% | +6% |
| US | 355 | +8% | +11% | 431 | +18% | +19% |
| Group Revenue | 785 | +3% | +4% | 867 | +12% | +12% |
| FY25 | FY24 | FY25 vs FY24 | ||
| (£ million) | 52 weeks to27 April 2025 | 52 weeks to28 April 2024 | Reported YoY % | Constant currency YoY % |
| UK and Europe | 866 | 846 | +2% | +2% |
| US | 786 | 692 | +14% | +16% |
| Group Revenue | 1,652 | 1,538 | +7% | +8% |
| FY25 | FY24 | FY25 v FY24 | ||
| (£million) | 52 weeks to27 April 2025 | 52 weeks to28 April 2024 | ReportedYoY % | Constant currencyYoY% |
| Luxury watches | 1,354 | 1,345 | +1% | +2% |
| Luxury jewellery | 211 | 102 | +106% | +108% |
| Services/other | 87 | 91 | -4% | -3% |
| Group Revenue | 1,652 | 1,538 | +7% | +8% |
