Watches of Switzerland Group PLC (LSE:WOSG) upgraded profit guidance and said it expects to report record annual revenue after strong growth in the US luxury watch market helped offset a tougher backdrop in the UK.
In a year-end trading update, the luxury watch retailer said revenue came in at £1.83 billion for the 53 weeks to 3 May, ticking up 13% at constant currency.
Adjusted earnings before interest and tax are expected to come in between £152 million and £155 million, ahead of previous guidance.
US revenue climbed 24% in constant currency to $1.24 billion and now accounts for more than half of group sales and profit. UK revenue increased 5%, with the company reporting improved trading momentum in the second half.
Brian Duffy, chief executive, said: “The US continues to be the primary engine of growth.”
The company said demand for key luxury watch brands continued to outstrip supply in both the US and UK markets, particularly for products with registration of interest waiting lists.
Luxury watch sales rose 13%, while luxury jewellery revenue increased 18%. Pre-owned watch sales were up 22% and ecommerce revenue rose 21% in constant currency.
Net debt stood at £57 million following the acquisition of Texas-based retailer Deutsch & Deutsch.
For the 2027 financial year, WoS forecasts revenue growth of 5-10% at constant currency and adjusted EBIT margin expansion of 40-80 basis points.
Duffy said: "Our growth pillars across the group provide a clear runway for further progress, and with a strong pipeline of showroom projects in both the UK and US, alongside the recently acquired Deutsch & Deutsch locations, we are well positioned to build further on our success."
The group said it remained mindful of geopolitical risks but had minimal direct exposure to the Middle East or tourist consumers.