Watches of Switzerland Group PLC (LSE:WOSG) delivered adjusted earnings at the top end of upgraded guidance and backed its outlook for another year of growth, as the luxury watch retailer published annual results a day after reports it had attracted takeover interest.
The luxury watch retailer revealed that revenue rose 11% to £1.8 billion in the 53 weeks to 3 May, while statutory PBT increased to £133 million from £76 million.
Operating profit (EBIT) rose 3% to £155 million, matching the top end of the £152-155 million guidance given in May, as revenue increased 11% to £1.8 billion.
Free cash flow climbed 65% to £162 million and net debt fell to £57 million from £96 million despite the acquisition of Deutsch & Deutsch.
The FTSE 250-listed company also backed its outlook for the current year, expecting revenue growth of 5-10% and adjusted EBIT margin expansion of 40-80 basis points.
Trading over the first ten weeks of the new year was said to have been "encouraging", with continued momentum in the US and signs of improving conditions in the UK.
Chief executive Brian Duffy said: "[Financial 2026] was a year of strong execution against a complex operating backdrop", pointing to US tariff-driven pricing changes and weaker UK consumer demand while continuing to invest in showrooms, ecommerce and new growth categories.
"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."
The results follow a Reuters report on Monday that WoS had held discussions in recent months over potential offers to take the company private. The company declined to comment on the report.
After a £25 million share buyback programme was completed in June 2025 and £13 million more shares were purchased during the 2026 financial year, the company said future buybacks would be considered "selectively" when cash generation exceeded business needs.
