4 December 2025

 

Watches of Switzerland Group PLC

H1 FY26 Results

for the 26 weeks to 26 October 2025 (H1 FY26)

 

 Strong H1 FY26 performance driven by robust US growth

Group Adjusted EBIT £69 million, an increase of 6%¹ vs prior year

FY26 guidance reiterated

 

Brian Duffy, Chief Executive Officer, said:

"We have delivered a strong first half, with Group revenue up 10% in constant currency, and good levels of profitability with Group Adjusted EBIT² of £69 million, up 6%¹, along with strong free cash flow and return on capital employed.

 

"The US remains the key driver of our performance, with robust demand across brands and categories, and the region now makes up almost 60% of our profitability. One year in, we are even more excited about the scale of the opportunity for Roberto Coin and Hodinkee. In the UK, trading has been resilient in a challenging market, underpinned by the stability of the luxury watch segment and the strength of our consumer proposition, with particular success at our flagship boutiques.

 

"We welcome the recent reduction in US tariffs on Swiss imports, which is a positive development for the sector.

 

"The second half of the year has started well. Trading is in line with expectations, and we are well placed as we enter the Holiday trading period. Whilst we remain mindful of the external economic and geopolitical environment, we are confident in the strength of our business and our differentiated offering, and have reiterated our FY26 guidance."

 

(£million)	26 weeks ended 26 October 2025	26 weeks ended 27 October 2024	YoY change Reported rates	YoY change Constant currency1
Group revenue	845	785	+8%	+10%
UK and Europe	436	430	+2%	+2%
US	409	355	+15%	+20%
Adjusted EBITDA2	91	87	+4%
Adjusted EBITDA margin2	10.8%	11.1%	(30)bps
Adjusted EBIT2	69	66	+4%	+6%
Adjusted EBIT margin2	8.1%	8.4%	(30)bps
Adjusted basic EPS2 (p)	19.6	18.1	+8%
Statutory operating profit	79	60	+32%
Statutory profit before tax	61	41	+50%
Statutory basic EPS (p)	19.1	12.2	+57%
Free cash flow2	48	28	+71%
Return On Capital Employed2	17.3%	16.5%	+80bps
Net debt2	112	120	(7)%

 

Group revenue £845 million, +10% at constant currency, +8% at reported rates

·      Luxury watch demand remained strong, with continued growth in client Registration of Interest lists

·      Luxury jewellery represented 12% of Group revenue driven by strong performance in luxury branded jewellery

·      Roberto Coin wholesale sales +16% in constant currency, +12% at reported rates, supported by successful new product launches and an effective advertising campaign

·      Certified Pre-Owned continued to perform well. Rolex Certified Pre-Owned, our second largest watch brand, is now in all US Rolex agencies. Expansion plans for remaining UK agencies are underway

·      Group ecommerce³ revenue increased +17% on last year in constant currency reflecting our successful digital investments

 

Group Adjusted EBIT £69 million, +6% in constant currency, +4% at reported rates

·      Adjusted EBIT margin 8.1%, -30 bps vs prior year reflecting changes in gross margin rates and product mix

·      Strong growth in the US which made up 59% of Group Adjusted EBIT and 48% of Group revenue

·      Total US Adjusted EBIT for H1 FY26 (including Roberto Coin wholesale) was up 16% to £40.6 million, with Adjusted EBIT margin % up 10bps to 9.9%

·      UK & Europe Adjusted EBIT for H1 FY26 was £30.8 million, a reduction of £3.9 million (-11%) versus last year, with Adjusted EBIT margin % of 7.1%, 100bps lower than last year

·      Group statutory profit before tax £61 million, +50% vs prior year

Strong free cash flow and balance sheet position

·      Free cash flow of £48 million, +71% vs prior year, with conversion² of 53% an improvement from 32% in the prior year

·      Ongoing investment in showroom developments, with expansionary capital expenditure⁵ of £37 million

·      Completion of the £25 million share buyback programme

·      Net debt of £112 million as at 26 October 2025 (27 October 2024: £120 million), with 0.6x net debt/EBITDA² leverage

·     Return on Capital Employed improved to 17.3%, +80bps vs H1 FY25, reflecting efficient capital deployment and robust profitability

US revenue £409 million, +20% at constant currency, +15% at reported rates

·     Sustained broad-based growth across brands and price points, reflecting the success of our model and strength of client demand

·     US tariffs on Swiss imports now agreed at 15% on landed cost, reduced from 39% in place previously

·     Investment in driving US ecommerce, including successful re-platforming of the Watches of Switzerland and Roberto Coin US ecommerce sites

·     Roberto Coin sales through our retail channels more than doubled vs prior year, following the implementation of shop-in-shop branded displays and successful marketing. There is an opportunity to roll this concept out to wholesale partners

·     Three new Roberto Coin mono-brand boutiques: New York (opened November 2025); Las Vegas (opening December 2025); Miami set to open in January 2026

 

UK⁴ revenue £436 million, +2% at reported rates, +5% adjusting for showroom closures

·     Resilient performance in a challenging retail environment

·     Strong momentum across flagship boutiques, with the flagship Rolex Boutique on Old Bond Street outperforming expectations

·     Strong ecommerce growth in the UK

 

H1 FY26 Operational Highlights

·     Good progress with our showroom development programme, with eight projects completed in H1 FY26 and a further six completed at the date of this announcement

·     Confirmed relocation of Rolex Boutique Heathrow T5, to open in Summer 2026, following the relocation of the Watches of Switzerland multi-brand showroom planned to open in December 2025

·     Hodinkee integration on track and development of growth strategy has progressed. Launched limited edition product with Nivada Grenchen and Maison Alcee, which sold out rapidly

·     Flagship Rolex Boutique on Old Bond Street, London continues to outperform, and achieved a Net Promoter Score of 94.5%

·     Exit of the European business is now complete

 

Outlook

We welcome the recent reduction in US tariffs on Swiss imports, which is a positive development for the sector.

 

The second half of the financial year has started well, with trading in line with expectations. We are well positioned as we enter the Holiday trading period. Whilst we remain mindful of the external economic and geopolitical environment, we are confident in the strength of our business and our differentiated offering and have reiterated our FY26 guidance.

 

Guidance reflects current visibility of supply from key brands and confirmed showroom refurbishments, openings and closures, and excludes uncommitted capital projects and 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.

 

 

H1 FY26 Revenue Performance by Geography

	H1 FY26	H1 FY25	H1 FY26 vs H1 FY25
(£million)	26 weeks to 26 Oct 2025	26 weeks to 27 Oct 2024	Reported YoY %	Constant currency YoY %
UK	436	426	+2%	+2%
Europe	-	4
UK & Europe total	436	430	+2%	+2%
US retail	355	306	+16%	+21%
US Roberto Coin wholesale	56	50	+12%	+16%
Intercompany eliminations	(2)	(1)
US total	409	355	+15%	+20%
Group Revenue	845	785	+8%	+10%

 

 

H1 FY26 Revenue Performance by Category

 

	H1 FY26	H1 FY25	H1 FY26 v H1 FY25
(£million)	26 weeks to 26 Oct 2025	26 weeks to 27 Oct 20246	Reported YoY %	Constant currency YoY %
Luxury watches	708	655	+8%	+10%
Luxury jewellery	102	95	+6%	+10%
Services/other	35	35	+1%	+2%
Group Revenue	845	785	+8%	+10%

 

H1 FY26 Results Presentation

A webcast conference call for analysts and investors will be held at 9.00am (UK time) today. To join the call, please use the following details:

 

Webcast details:

Register at: https://brrmedia.news/WOS_HY_2026

 

Conference call dial-in details:

United Kingdom: +44 (0) 33 0551 0200

United Kingdom (Toll-Free): 0808 109 0700

Password: Watches of Switzerland HY26

 

Engage Investor

We are also pleased to announce that our leadership team will host a live interactive presentation on the Engage Investor platform at 2.00pm (UK time) today. We welcome all current shareholders and interested investors to join.

 

Register interest in this event here: 

https://engageinvestor.news/WOS_IP_1225

 

Contacts

The Watches of Switzerland Group
Anders Romberg, CFO	+44 (0) 207 317 4600
Caroline Browne, Group Finance and Investor Relations Director	+44 (0) 116 281 7420
investor.relations@thewosgroup.com
Headland
Lucy Legh / Rob Walker / Scarlett Hateley	+44 (0) 203 805 4822
wos@headlandconsultancy.com

 

About the Watches of Switzerland Group

The Watches of Switzerland Group is the UK's largest luxury watch retailer, operating in the UK and US comprising seven prestigious brands; Watches of Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US), Betteridge (US), Analog:Shift (US) and Hodinkee (US), with a complementary jewellery offering. Since 8 May 2024, the Group has also owned the exclusive distribution rights for Roberto Coin in the US, Canada, Central America and the Caribbean.

 

As at 26 October 2025, the Watches of Switzerland Group had 196 showrooms across the UK and US including 84 dedicated mono-brand boutiques in partnership with Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand Seiko, Roberto Coin, BVLGARI and FOPE and has a leading presence in Heathrow Airport with representation in Terminals 2, 3, 4 and 5 as well as seven retail websites.

 

The Watches of Switzerland Group is proud to be the UK's largest retailer for Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.

www.thewosgroupplc.com

 

 

 

Chief Executive Officer's Review

We have delivered a strong first half, with Group revenue up 10% at constant currency (+8% reported) to £845 million, demonstrating continued momentum across the Group reflecting the strength of our business model, disciplined strategy execution, and favourable market trends in the US. H1 FY26 Adjusted EBIT was £69 million up 4% on last year, with Adjusted EBIT margin % down 30 bps to 8.1%. Statutory profit before tax was £61 million, up 50% vs prior year.

 

Demand for luxury watches remains robust, consistently exceeding supply, with ongoing additions to and conversions of the client Registration of Interest lists.

 

We are pleased with the progress seen across our markets, with the US as the standout performer. Sales in this market were up 20% in constant currency, driven by broad-based growth across brands and categories throughout the period. Investments in our teams, showrooms and digital offer are driving growth in all our markets.

 

In November 2025, we welcomed the agreement between the US and Switzerland to reduce US tariffs on Swiss imports to 15%, from the 39% tariff which has been in place since 7 August 2025. This new rate provides greater clarity and assurances for the sector. Notably, we have observed no significant change in consumer behaviour following the introduction of the initial tariffs, underscoring the continued robust demand for luxury watches and jewellery in the US.

 

In the UK, our business performed well despite ongoing challenges facing the UK High Street, with revenue up 5% adjusting for showroom closures. Our flagship Rolex boutique on Old Bond Street, the largest in Europe, continues to outperform expectations, delivering exceptional service and experiences to our clients every day.

 

Certified Pre-Owned continues to perform strongly and in line with expectations. Our scale and expertise in sourcing, valuing and servicing products differentiates us in this market. Rolex Certified Pre-Owned, our second biggest watch brand, is now in all US Rolex agencies. Plans to expand this offering into remaining UK agencies are in place.

 

We have invested into driving ecommerce, including the successful re-platforming of the Watches of Switzerland and Roberto Coin US ecommerce sites, with Mayors and Betteridge to follow. Investment into ecommerce has resulted in Group ecommerce sales growth of +17% vs the prior period in constant currency. Ecommerce is an important part of the client journey and multi-channel offering of the Group.

 

We are encouraged by the progress in luxury jewellery, with Group luxury jewellery revenue up 10% at constant currency. This growth is driven by good performance in luxury branded jewellery and Roberto Coin wholesale. In our first full year of ownership, Roberto Coin wholesale has delivered excellent results with sales +16% in constant currency, through the implementation of our growth acceleration strategy, supported by a positive market response to new product and advertising campaigns.

 

The introduction of new Roberto Coin shop-in-shop branded displays in our US retail showrooms has more than doubled sales. There is an opportunity to roll this concept out to wholesale partners to drive their productivity with the brand. In November 2025 we opened one Roberto Coin mono-brand boutique in Hudson Yards, Manhattan. Further openings will take place at The Forum, Las Vegas in December 2025, and at the Miami Design District in January 2026.

 

We were pleased to open the new concept Mappin & Webb luxury jewellery boutique in Manchester in September 2025 to excellent client feedback. This boutique includes a number of luxury jewellery brands including a De Beers mono-brand boutique.

 

Hodinkee continues to be the go-to, global destination for luxury watch enthusiasts offering digital print and video content, limited edition watch collaborations and watch and jewellery insurance services. Integration of this business is going well, and we are seeing great potential to leverage the Hodinkee follower base to broaden our client base and data insight. During the period Hodinkee have been involved in several watch events, including client events in our showrooms and the UBS House of Craft. They have also created limited edition products with Nivada Grenchen and Maison Alcee which sold out rapidly.

 

We continue to make good progress with our showroom development programme, which drives sustained growth and showcases world-class retail experiences. Projects completed in H1 FY26 and pipeline for the remainder of the financial year include:

·      Completed in H1 FY26

·      New Audemars Piguet House, Manchester operating as a joint venture - May 2025

·      Refurbishment of Goldsmiths Kingston-Upon-Thames - May 2025

·      Refurbishment of Newcastle Goldsmiths - retailing Rolex since 1919 - July 2025

·      Relocation of Mayors Lenox, Atlanta - August 2025

·      Expansion of Mappin & Webb Cambridge - August 2025

·      Relocation of Goldsmiths Merry Hill, Birmingham - September 2025

·      New Mappin & Webb luxury jewellery boutique, Manchester - September 2025

·      Relocation of Goldsmiths Peterborough - September 2025

·      Exciting pipeline of projects for H2 FY26

·      New Watches of Switzerland Southdale, Minneapolis - opened October 2025

·      Relocation of Mayors Sarasota, Florida - opened November 2025

·      Expansion of Goldsmiths Oxford - opened November 2025

·      Expansion and conversion of Mappin & Webb Birmingham - December 2025

·      Relocation of Watches of Switzerland Heathrow T5 - December 2025

·      Three new Roberto Coin mono-brand boutiques in New York (opened November 2025), Las Vegas (opening December 2025) and Miami (opening January 2026)

·      Rolex boutique Glasgow currently being expanded, opening in Summer 2026

·      Confirmed relocation of Rolex Boutique Heathrow T5, to open in Summer 2026

 

Finally, I would like to thank our teams who continue to inspire and deliver. Their hard work and commitment are what enable the Group to succeed. Our continued strong performance reflects the strength of our model, consistent execution of our growth strategy and the talent we have across the Group.

 

 

 

Financial Review

 

An extract of the Group's Consolidated Income Statement is shown below which is presented including IFRS 16 'Leases' and exceptional items.

 

Income Statement - post-IFRS 16 and exceptional items (£million)	26 weeks to 26 October 2025	26 weeks to 27 October 2024	YoY variance
Revenue	845.1	784.8	8%
Operating profit	79.4	60.2	32%
Net finance cost	(18.5)	(19.7)	6%
Profit before taxation	60.9	40.5	50%
Taxation	(16.5)	(11.6)	(44)%
Profit for the financial period	44.4	28.9	53%
Basic earnings per share	19.1p	12.2p	57%

Management monitors and assesses the business performance on a pre-IFRS 16 and exceptional items basis, which is shown below. This aligns to the reporting used to inform business decisions, investment appraisals, incentive schemes and debt covenants. A full reconciliation between the pre- and post-IFRS 16 results is shown in the Glossary.

 

Income Statement - pre-IFRS 16 and exceptional items (£million)	26 weeks to 26 October 2025	26 weeks to 27 October 2024	YoY variance
Revenue	845.1	784.8	8%
Net margin2	298.7	284.3	5%
Net margin %	35.3%	36.2%	(90)bps
Showroom costs	(146.9)	(141.6)	(4)%
Overheads	(57.4)	(50.6)	(13)%
EBITDA2	94.4	92.1	3%
Showroom opening and closing costs	(3.6)	(4.8)	24%
Adjusted EBITDA2	90.8	87.3	4%
Adjusted EBITDA margin %	10.8%	11.1%	(30)bps
Depreciation, amortisation and loss on disposal of fixed assets	(22.3)	(21.1)	(6)%
Adjusted EBIT2 (segment profit)	68.5	66.2	4%
EBIT margin %	8.1%	8.4%	(30)bps
Net finance costs	(5.9)	(7.3)	19%
Adjusted profit before taxation	62.6	58.9	6%
Adjusted earnings per share2	19.6p	18.1p	8%

 

Revenue

 

Revenue by geography and category

26 weeks to 26 October 2025 (£million)	UK and Europe	YoY % Reported	US	YoY % Reported	Total	YoY % Reported	Mix
Luxury watches6	379.4	+2%	328.7	+17%	708.1	+8%	84%
Luxury jewellery retail	29.5	-%	18.4	+10%	47.9	+3%	5%
Luxury jewellery wholesale	-	-%	56.3	+12%	56.3	+12%	7%
Eliminations	-	-%	(2.4)		(2.4)		-
Services/other6	27.5	-1%	7.7	+9%	35.2	+1%	4%
Total revenue	436.4	+2%	408.7	+15%	845.1	+10%	100%

 

Group revenue of £845 million increased by 10% at constant currency, +8% at reported rates from prior year, driven by a strong performance in our US market.

 

Group revenue from luxury watches grew by 8% on the prior year. Demand for our key brands, particularly products on Registration of Interest lists, continues to be strong, with consistent additions and conversions. We remain encouraged by the performance of our pre-owned business with Rolex Certified Pre-Owned, our second biggest brand, now in all agencies in the US and 26 in the UK with plans for full rollout into all agencies. Luxury Watches made up 84% of revenue versus 83% in H1 last year.

 

Group luxury jewellery revenue, excluding wholesale, increased by 3% on the prior year, UK sales were flat but +7% growth when the impact of closed showrooms is reflected. The majority of luxury jewellery sold by the Group is retailed under our house brands of Goldsmiths, Mappin & Webb, Mayors and Betteridge. Our strategy is to grow our luxury branded jewellery offering, where we partner with other major luxury jewellery brands. Luxury branded jewellery sales continue to outperform non-branded jewellery.

 

Services/other revenue, consisting of servicing, repairs, insurance services and the sale of fashion and classic watches and other non-luxury jewellery, grew by 1%.

 

Group ecommerce³ sales increased by 17% compared to the prior year in constant currency, investment in the US drove strong growth including the successful re-platforming of the Watches of Switzerland and Roberto Coin US ecommerce sites. We continue to be the market leader in ecommerce for luxury watches and jewellery in the UK and growth was seen across all product categories in the half.

 

US revenue increased by 20% year-on-year in constant currency (+15% reported) and the US business made up 48% of the Group's revenue in H1 FY26 (H1 FY25: 45%). Luxury watch sales remained strong across brands and price points, with luxury watches outperforming the rest of the portfolio. Several brands raised prices in the period in response to ongoing cost pressures from gold and exchange rates, alongside additional tariffs on the landed cost of Swiss exports. Customer demand and interest in the category remained positive throughout the period.

 

During the half, a refurbished Mayors multi-brand showroom opened in Lenox, Atlanta following the opening of the standalone Rolex boutique in H2 FY25. In October 2025, we opened a new Watches of Switzerland Southdale, Minneapolis and work is progressing on the refurbishment of Betteridge Greenwich, Connecticut, due to open in Summer 2026.

 

We continue to integrate Roberto Coin into the business in our first full year of ownership. Updated product ranges and a new advertising campaign received positive feedback from partners. Within our retail network the implementation of shop-in-shop displays in our retail network has generated strong returns. Wholesale revenue in the period grew by 16% at constant currency, +12% at reported rates.

 

UK and Europe revenue increased by 2% during the period, +5% when the impact of showroom closures is reflected. This was a good performance in a challenging retail environment. Strong momentum across our flagship boutiques, with Rolex Old Bond Street outperforming. Sales in the UK continue to be driven by a domestic clientele with ongoing tourist sales significantly below performance seen when tax free shopping was available.

 

In September 2025 we opened our new concept Mappin & Webb luxury jewellery boutique in Manchester to strong client feedback. Ten UK non-core showrooms were closed in the half, in addition to the 14 closed in FY25, allowing us to consolidate our portfolio and drive productivity across our estate.

 

Six projects were completed enhancing our existing estate to further elevate the partner brands we display in those showrooms and advance our client experience, these included our first ever Rolex agency on Blackett Street, Newcastle. Our two remaining European showrooms were divested to brand partners in the period.

 

Profitability

 

Group Adjusted of EBIT £69 million was +6% vs prior year in constant currency, +4% at reported rates.  Adjusted EBIT margin % was 8.1%, -30 bps vs prior year due to gross margin rates and product mix.  The US was the major growth area and represented 48% of Group sales and 59% of Group Adjusted EBIT.

 

US Income Statement - pre-IFRS 16 and exceptional items (£million)

 

	US Retail			US Wholesale			Eliminations		US Total
	26 weeks to 26 October 2025	26 weeks to 27 October 2024	YoY variance	26 weeks to 26 October 2025	26 weeks to 27 October 2024	YoY variance	26 weeks to 26 October 2025	26 weeks to 27 October 2024	26 weeks to 26 October 2025	26 weeks to 27 October 2024	YoY variance
Revenue	354.8	305.6	+16%	56.3	50.4	+12%	(2.4)	(1.1)	408.7	354.9	+15%
Net margin	124.2	110.1	+13%	23.6	20.6	+15%	-	-	147.8	130.7	+13%
Net margin %	35.0%	36.0%	(100)bps	41.9%	40.9%	+100bps	-	-	36.2%	36.8%	(60)bps
Adjusted EBIT	29.0	24.0	+21%	11.6	10.9	+6%	-	-	40.6	34.9	+16%
Adjusted EBIT %	8.2%	7.9%	+30bps	20.6%	21.6%	(100)bps	-	-	9.9%	9.8%	+10bps

 

Total US Adjusted EBIT for H1 FY26 was up 16% to £40.6m, with Adjusted EBIT margin % up 10bps to 9.9%.

 

Within US retail, Adjusted EBIT for H1 FY26 was £29.0 million, an increase of £5.0 million (+21%) versus last year, this equated to an Adjusted EBIT margin % of 8.2%, +30bps favourable to last year. Net margin % was 35.0%, down 100bps in the period driven by product mix and reduction in brand margins following the imposition of US tariffs and higher gold prices. 

 

Fixed cost leverage was gained on the sales increase of 16%, with costs rising at a slower rate than sales. Cost increases were driven from the annualisation of associated overheads from the acquisition of Hodinkee, variable costs from sales growth (predominantly commission and credit card fees), and investment into ecommerce to support the roll out of the new Watches of Switzerland and Roberto Coin US websites.

 

US wholesale Adjusted EBIT of £11.6 million was an increase of £0.7 million (+6%) versus last year, this equated to an Adjusted EBIT margin % of 20.6% versus 21.6% in the prior year. Net margin % was up 100bps to 41.9% following price increases implemented during the period. The Group invested into additional marketing in Roberto Coin, including the marketing campaign with Dakota Johnson, which has supported sales growth during the period.

 

UK & Europe Income Statement - pre-IFRS 16 and exceptional items (£million)

 

	Profitability
	26 weeks to 26 October 2025	26 weeks to 27 October 2024	YoY variance
Revenue	436.4	429.9	+2%
Net margin	150.9	153.6	-2%
Net margin %	34.6%	35.7%	(110)bps
Adjusted EBIT	30.8	34.7	-11%
Adjusted EBIT %	7.1%	8.1%	(100)bps

 

Adjusted EBIT for H1 FY26 was £30.8 million, a reduction of £3.9 million (-11%) versus last year, this equated to an Adjusted EBIT margin % of 7.1%, 100bps adverse to last year. Net margin % was 34.6% in the period, 110bps adverse to last year, driven by product mix and fewer price rises where benefit is gained from selling inventory bought prior to price rises.

 

Exceptional items

 

Exceptional items are defined by the Group as those which are significant in magnitude or are linked to events which are expected to be infrequent in nature. Total exceptional items increased profit by £0.9 million.

 

Exceptional items (£million)	26 weeks to 26 October 2025	26 weeks to 27 October 2024
Lease related gains	1.8	-
Showroom closure costs	(0.7)	-
Business acquisition costs	(0.2)	(0.7)
Rolex Old Bond Street	-	(2.4)
Showroom impairment	-	(13.4)
Total exceptional items	0.9	(16.5)

 

Lease related gains

Early lease exit settlements were negotiated for a number of closed showrooms in the period. This resulted in a £1.3 million lease surrender gain. The Group further sublet one lease which resulted in a £0.5 million gain. These have been recognised as exceptional items as they do not form part of the underlying trading of the Group, and partly offset impairment charges taken to exceptional items in the prior period.

 

Showroom closure costs

Showroom closure costs include £0.4 million of redundancy costs, and £0.3 million for business rates in relation to closed showrooms.

 

Business acquisitions costs

Professional, legal expenses and integration expenses in relation to business combinations have been expensed as an exceptional cost as they are regarded as non-trading, non-underlying costs. The amount incurred in the current period relates to acquisitions made in the previous year. 

 

Adjusted EBIT and operating profit

 

As a result of the items noted above, Adjusted EBIT was £68.5 million, an increase of £2.3 million, +4% on the prior year. After accounting for exceptional gains of £0.9 million and IFRS 16 adjustments of £10.0 million, operating profit as presented on the face of the Interim Condensed Consolidated Income Statement was £79.4 million, an increase of £19.2 million, +32% on the prior year.

 

Finance costs

 

Net finance costs (£million)	26 weeks to 26 October 2025	26 weeks to 27 October 2024
Pre-IFRS 16 net finance costs, excluding exceptionals	5.9	7.3
IFRS 16 interest on lease liabilities	12.8	11.1
Reversal of pre-IFRS 16 onerous lease interest	(0.2)	-
Total net finance costs, excluding exceptionals	18.5	18.4

 

Interest payable on borrowings decreased in the period following a reduction of net debt and interest rates. The impact was a net decrease in the pre-IFRS 16 interest charge of £1.4 million to £5.9 million. The IFRS 16 interest on lease liabilities increased by £1.7 million due to the larger estate following expansions and new showrooms.

 

Taxation

 

The pre-IFRS 16 Effective Tax Rate for the period before exceptional items was 27.5%. The statutory (post-IFRS 16 and including exceptionals) effective tax rate was 27.2%. This is higher than the applicable UK corporation tax rate for the year of 25.0% as a result of higher chargeable taxes on US profits and the impact of expenses disallowed for corporation tax. Further detail can be found in note 6 within the Interim Condensed Consolidated Financial Statements.

 

Balance Sheet

 

Balance Sheet (£million)	26 October 2025	27 April 2025	27 October 20247
Goodwill and intangibles	303.8	304.1	308.2
Property, plant and equipment	212.0	192.4	203.5
Right-of-use assets	362.1	358.6	369.0
Investment in joint venture and associates	0.5	0.5	-
Inventories	502.8	447.4	481.2
Trade and other receivables	51.6	60.5	60.4
Trade and other payables	(256.9)	(259.5)	(281.1)
Lease liabilities	(454.6)	(454.6)	(454.3)
Net debt	(112.4)	(96.2)	(119.5)
Other	(23.8)	(13.6)	(19.8)
Net assets	585.1	539.6	547.6

 

Goodwill and intangibles decreased by £0.3 million in the period, as a result of £0.6 million amortisation of brands and agency agreements, and a £0.1 million favourable exchange impact. A further £1.3 million of computer software additions were made in the year as part of ongoing IT investments, offset by amortisation of £1.1 million.

 

Property, plant and equipment increased by £19.6 million in the period. Additions of £40.4 million and favourable foreign exchange movements of £0.1 million were offset by depreciation of £20.2 million and disposals of £0.7 million. Including software costs, which are disclosed as intangibles, capital additions (including accruals) were £41.7 million in the period, of which £40.5 million was expansionary. Expansionary capex relates to new showrooms, relocations or major refurbishments (defined as costing over £0.25 million). In the period, the Group opened one new showroom and refurbished seven showrooms. Investment in our portfolio is paramount to our strategy and drives sales and returns. The Group follows a disciplined payback policy when making capital investment decisions, the internal hurdle for showroom investments is a cash payback of under three years (investment in fixed assets and inventory divided by showroom EBITDA).

 

Right-of-use assets increased by £3.5 million in the period, to £362.1 million. Additions to the lease portfolio along with lease renewals or other lease changes were £29.7 million. This has been offset by depreciation of £26.3 million. The remaining movement is a £0.1 million favourable foreign exchange impact.

 

Lease liabilities remained in line with the prior year. The portfolio changes noted above increased the lease liability by £28.4 million. Interest charged on the lease liability was £12.8 million and there was a £0.1 million adverse foreign exchange impact. Lease payments were £41.3 million, giving a final lease liability balance of £454.6 million.

 

Inventory levels increased by £21.6 million (4%) compared to H1 FY25. The increase of inventory relates to targeted investment in strategic brand partnerships, increases as a result of US tariffs, and the introduction of lab grown diamonds, partially offset through a reduction in underlying inventory to maintain stock turn at appropriate levels. The increase in inventory since April 2025 is driven by the normal trends in supporting the upcoming Holiday season. The inventory obsolescence risk remains low for the Group.

 

Trade and other receivables decreased by £8.8 million compared to H1 FY25. The notable reason for the decrease being £9.7 million of monies held in escrow in relation to business combinations which has been paid in the period. The balance also represents prepayments, rebate receivables, rent deposits and other ad hoc receivables such as property contributions.

 

Trade and other payables decreased by £24.2 million compared to H1 FY25. Notable reasons for the decrease being: £7.4 million of contingent consideration paid in relation to acquisitions, in addition to the £2.1 million net working capital true up payment (see note 15 of the Interim Condensed Consolidated Financial Statements) and payment of £9.7 million of acquisition balances held in third party escrow accounts as noted above.

 

Other includes taxation balances, defined benefit pension and capitalised finance costs.

 

Net debt and financing

 

Net debt on 26 October 2025 was £112.4 million, an increase of £16.2 million since 27 April 2025. The strong free cash flow of £48.4 million being utilised for £37.3 million of expansionary capex and £9.5 million in relation to acquisitions cash flow. We completed the £25 million share buyback programme in the period, with the final £13.8 million being paid in the first half of the year.  Net debt/EBITDA leverage² was 0.6x at the half year end.

 

Net debt post-IFRS 16 was £565.1 million. The value comprises the pre-IFRS 16 net debt of £112.4 million and the £454.6 million lease liability, offset by capitalised transaction costs of £1.9 million. The balance increased by £16.6 million (from £548.5 million) in the period, for the reasons noted above.

 

The Group's maximum amount available under its committed facility was £368.9 million at 26 October 2025.

 

Facilities held	Expiring	Amount (million)
Multicurrency revolving loan facility - UK SONIA +1.50% to +2.575%	May 2028	£275.0
Multicurrency term facility - UK SONIA +1.65% to +2.70%	May 2028	$125.0 / £93.9

 

£175.7 million of these facilities were drawn down at 26 October 2025. Liquidity headroom (defined as unrestricted cash plus undrawn available facilities) was £237.5 million. Further detail with regards to covenant tests and liquidity headroom can be found within the going concern section of note 1 of the Interim Condensed Consolidated Financial Statements.

 

Cash Flow

 

Cash Flow (£million)	26 weeks to 26 October 2025	26 weeks to 27 October 2024
Adjusted EBITDA	90.8	87.3
Share-based payment charge	0.7	1.7
Working capital	(29.4)	(41.6)
Pension contributions	(0.3)	(0.3)
Tax	(6.3)	(11.6)
Cash generated from operating activities	55.5	35.5
Maintenance capex	(1.2)	(1.6)
Net interest	(5.9)	(5.6)
Free cash flow2	48.4	28.3
Free cash flow conversion2	53%	32%
Expansionary capex	(37.3)	(43.6)
Acquisitions (inc. contingent consideration)	(9.5)	(106.9)
Share buyback	(13.8)	-
Costs directly attributable to raising new loan facility	-	(0.3)
Disposal of property, plant and equipment	0.4	2.7
Exceptional items - cash	(4.1)	(2.7)
Cash flow	(15.9)	(122.5)
Net (repayment)/proceeds of borrowings	(19.9)	118.0
Net decrease in cash and cash equivalents	(35.8)	(4.5)

 

Free cash flow increased by £20.1 million to £48.4 million in the period to 26 October 2025 and free cash flow conversion was 53% compared to 32% in the prior year, primarily as a result of a lower working capital outflow in the period through disciplined inventory management.

 

Expansionary cash capex of £37.3 million was lower than the prior year due to a decrease in new showroom openings and refurbishments. In the period, the Group opened one new showroom and refurbished seven showrooms.

 

£13.8 million of shares were paid for in the period as part of the share buyback programme. The balance of the £25 million buyback programme was completed in June 2025.

 

Exceptional cash items of £4.1 million, includes £3.4 million of early lease settlements as detailed in note 4 to the Interim Condensed Consolidated Financial Statements.

 

Return on Capital Employed (ROCE)²

	52 weeks to 26 October 2025	52 weeks to 27 October 2024
ROCE	17.3%	16.5%

 

H1 FY26 ROCE is 17.3%, an increase of 80bps in comparison to the prior year. This is as a result of last twelve month Adjusted EBIT increasing by 19.2%, compared to the increase in Average Capital Employed of 13.8%, reflecting efficient capital deployment and robust profitability.

 

Capital Allocation

 

The Group has a clear framework of capital allocation and is focused on optimising capital deployment for the benefit of all our stakeholders, with a focus on long-term sustainable growth in the business. It is also important for the Group to maintain financial and operational flexibility to be able to react tactically to opportunities, such as strategic acquisitions, at speed. Our capital allocation framework is as follows:

 

1.     Showroom investments - given the attractive returns from showroom investments, this is our key focus area to allocate capital to. In H1 FY26 the Group spent £37.3 million in expansionary cash capex

2.     Strategic acquisitions - this is a key pillar of our growth strategy. Acquisitions must deliver return on investment in line with our disciplined financial criteria, within an appropriate timeframe.

3.     Returns to shareholders - in the event of surplus capital above and beyond the requirements of the business for investment into showrooms or strategic acquisitions, we would consider returns to shareholders either through ordinary dividends or share buybacks, with the appropriate mechanism to be decided at the appropriate time by the Board. During the prior period to 27 April 2025 the Group announced a £25 million share buyback programme. £11.3 million of shares were purchased and paid for in H2 FY25 with an additional £13.8 million purchased and paid for in H1 FY26. The programme completed in June 2025.

 

Showroom Portfolio

 

As at 26 October 2025, the Group had 196 showrooms. The movement in showroom numbers is included below:

 

	UK multi-brand showrooms	UK mono-brand boutiques	Europe mono-brand boutiques	Total UK and Europe	US multi-brand showrooms	US mono-brand boutiques	Total US	Total Group
27 April 2025	89	57	2	148	25	35	60	208
Openings	1	-	-	1	-	-	-	1
Closures	(3)	(7)	(2)	(12)	-	(1)	(1)	(13)
26 October 2026	87	50	-	137	25	34	59	196

Footnote references

¹ Growth shown in constant currency. Refer to Glossary for definition, purpose and reconciliations to statutory measures

² 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

³ Ecommerce sales are sales which are transacted online

⁴ UK revenue excludes revenue from European operations which are now closed

⁵ Expansionary capex is defined as capital expenditure relating to new showrooms or offices, relocations or refurbishments greater than £250,000

⁶ In the period, the Group has reclassified the sales of certain watch brands from services/other into luxury watches. The 26 week period ended 27 October 2024 has been re-presented to allow for comparison

⁷ The 26 week period ended 27 October 2024 balances have been restated, in line with IFRS 3 'Business combinations', to reflect the finalisation of the provisional fair values of Roberto Coin Inc. and the Hodinkee business. Further detail is disclosed within note 15 of the Interim Condensed Consolidated Income Statement

 

Certain financial data within this announcement has been rounded. Growth rates are calculated on unrounded numbers.

 

 

 

Principal and emerging risks and uncertainties

 

The Group is exposed to a number of risks and uncertainties in its business which could impact its ability to effectively execute its strategy and cause actual results to differ materially from expected and/or historical results. The Board has undertaken a robust assessment of the principal and emerging risks and uncertainties facing the Group, including those that would threaten its business model, future performance, solvency or liquidity. The risks presented in the 2025 Annual Report and Accounts, described as follows, remain unchanged: Business strategy execution and development; Key suppliers and supply chain; Client experience and market risks; Colleague talent and capability; Data protection and cyber security; Business interruption; Regulatory and compliance; Economic and political; Brand and reputational damage; Financial and treasury; and Climate change. These are detailed on pages 148 to 153 of the 2025 Annual Report and Accounts, a copy of which is available on the Watches of Switzerland Group PLC (the 'Company') website at thewosgroupplc.com.

 

A full disclosure of the Group's principal risks and emerging risks and uncertainties, including the factors which mitigate them, are set out within the Strategic Report of the 2025 Annual Report and Accounts.

 

Disclaimer

This announcement has been prepared by Watches of Switzerland Group PLC (the 'Company'). It includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this announcement and the information incorporated by reference into this announcement and may include statements regarding the intentions, beliefs or current expectations of the Company Directors or the Group concerning, amongst other things: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies, the expansion and growth of the Group's business operations; and (iii) the effects of government regulation and industry changes on the business of the Company or the Group.

 

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in this announcement and/or the information incorporated by reference into this announcement.

 

Any forward-looking statements made by or on behalf of the Company or the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this announcement, and are subject to risks relating to future events, other risks, uncertainties and assumptions relating to the Company's operations and growth strategy, and a number of factors that could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Undue reliance should not be placed on any forward-looking statements and, except as required by law or regulation, the Company undertakes no obligation to update these forward-looking statements. No statement in this announcement should be construed as a profit forecast or profit estimate.

 

Before making any investment decision in relation to the Company you should specifically consider the factors identified in this document, in addition to the risk factors that may affect the Company or the Group's operations as detailed above.

 

WATCHES OF SWITZERLAND GROUP PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT

	Note	26 week period ended		26 week period ended
		26 October 2025		27 October 2024
		£m		£m
Revenue	2,3	845.1		784.8
Cost of sales		(743.4)		(687.5)
Exceptional cost of sales	4	-		(1.1)
Gross profit		101.7		96.2
Administrative expenses		(23.2)		(21.9)
Exceptional administrative income/(expenses)	4	0.9		(0.7)
Exceptional impairment of assets	4	-		(13.4)
Operating profit		79.4		60.2
Finance costs	5	(19.6)		(19.7)
Finance income	5	1.1		1.3
Exceptional finance costs	4,5	-		(1.3)
Net finance costs		(18.5)		(19.7)
Profit before taxation		60.9		40.5
Taxation	6	(16.5)		(11.6)
Profit for the financial period		44.4		28.9
Earnings per share
Basic	7	19.1p		12.2p
Diluted	7	19.1p		12.2p

 

 

  The notes are an integral part of the Interim Condensed Consolidated Financial Statements.

 

 

 

WATCHES OF SWITZERLAND GROUP PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

                                  

		Note	26 week period ended 26 October 2025		26 week period ended 27 October 2024
			£m		£m
Profit for the financial period			44.4		28.9
Other comprehensive income:
Items that may be reclassified to profit or loss in subsequent periods
Foreign exchange gain/(loss) on translation of foreign operations			0.2		(7.9)
Related tax movements			-		0.6
			0.2		(7.3)
Items that will not be reclassified to profit or loss in subsequent periods
Actuarial gain on defined benefit pension scheme	12		0.1		0.6
Related tax movements			-		(0.1)
			0.1		0.5
Other comprehensive income/(expense) for the period net of tax			0.3		(6.8)
Total comprehensive profit for the period net of tax			44.7		22.1

The notes are an integral part of the Interim Condensed Consolidated Financial Statements.

 

WATCHES OF SWITZERLAND GROUP PLC

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

 

		Note		26 October 2025	27 April 2025	27 October 2024
				£m	£m	£m
Assets
Non-current assets
Goodwill		8		231.3	231.2	233.7
Intangible assets		8		72.5	72.9	74.5
Property, plant and equipment		9		212.0	192.4	203.5
Right-of-use assets		10		362.1	358.6	369.0
Investment in joint venture and associates				0.5	0.5	-
Deferred tax assets				3.8	4.1	4.4
Post-employment benefit asset		12		0.9	0.5	0.7
Trade and other receivables				4.5	4.5	2.1
				887.6	864.7	887.9
Current assets
Inventories				502.8	447.4	481.2
Current tax asset				3.2	8.6	5.3
Trade and other receivables				47.1	56.0	58.3
Cash and cash equivalents		11		63.3	98.9	110.5
				616.4	610.9	655.3
Total assets				1,504.0	1,475.6	1,543.2
Liabilities
Current liabilities
Trade and other payables				(252.1)	(254.9)	(276.4)
Current tax liability				(1.5)	(0.5)	(2.2)
Lease liabilities		10		(58.9)	(56.0)	(58.0)
Provisions				(1.8)	(2.4)	(2.2)
				(314.3)	(313.8)	(338.8)
Non-current liabilities
Trade and other payables				(4.8)	(4.6)	(4.7)
Deferred tax liabilities				(19.5)	(15.9)	(18.4)
Lease liabilities		10		(395.7)	(398.6)	(396.3)
Borrowings		11		(173.8)	(192.8)	(228.5)
Provisions				(10.8)	(10.3)	(8.9)
				(604.6)	(622.2)	(656.8)
Total liabilities				(918.9)	(936.0)	(995.6)
Net assets				585.1	539.6	547.6
Equity
Share capital				2.9	3.0	3.0
Share premium				147.1	147.1	147.1
Capital redemption reserve				0.1	-	-
Merger reserve				(2.2)	(2.2)	(2.2)
Other reserves				(12.2)	(13.3)	(21.2)
Retained earnings				458.9	414.7	423.8
Foreign exchange reserve				(9.5)	(9.7)	(2.9)
Total equity				585.1	539.6	547.6

 

 

The notes are an integral part of the Interim Condensed Consolidated Financial Statements.

 

The 26 week period ended 27 October 2024 balances have been restated, in line with IFRS 3 'Business combinations', to reflect the finalisation of the provisional fair values of Roberto Coin Inc. and Hodinkee, Inc. Further detail is disclosed within note 15.