Watches Of Switzerland Group Stock Earnings Reports

Watches of Switzerland reported record FY25 sales of £1.652bn ( +8% constant currency) with adjusted EBIT of £150m (up 12% ccy) and an adjusted EBIT margin of 9.1%. The U.S. business is a key driver — surpassing $1bn of sales and now representing ~48% of the group — with strong momentum in showrooms, e-commerce replatforming (Shopify) and Certified Pre‑Owned (CPO). Management highlighted successful strategic acquisitions (Roberto Coin and Hodinkee) and continued investment in showroom upgrades (15 projects completed in FY25 and a pipeline across FY26–27 including flagship Rolex and mono‑brand Roberto Coin boutiques). FY25 free cash flow was £98m, net debt £96m (0.6x EBITDA), inventory increased (partly acquisition-related) and the group remains highly cash generative. For FY26 the group guides to constant currency revenue growth of 6–10%, adjusted EBIT margin flat to down 100 bps, and capex of £65–75m. Key risks and uncertainties: potential persistent U.S. tariffs on Swiss imports (10%) leading some brands to enact mid‑single digit price increases and/or reduce authorized distribution margins; guidance assumes current tariff environment and confirmed showroom projects only. Management remains confident in the long‑term structural growth of luxury watches/jewelry, the attractiveness of branded jewelry (Roberto Coin), and the expansion opportunity in U.S. e‑commerce and CPO.