Key facts
- Watches of Switzerland now expects fiscal 2027 revenue growth of 7% to 10% at constant currency, up from 5% to 10%.
- The company expects adjusted EBIT margin expansion of 60 to 80 basis points from fiscal 2026, versus a prior 40 to 80 basis points.
- Watches of Switzerland said it expects adjusted operating profit of £87 million to £89 million for the half-year ended November 1.
- That compares with £66 million reported a year earlier, the company said.
- The company said it has limited direct exposure to the Middle East, where geopolitical tensions have weighed on parts of the luxury sector.
Watches of Switzerland Group raised the lower end of its annual outlook on November 10 after strong first-half trading, driven by demand in the US and Britain. The Leicester-based luxury retailer now expects revenue growth of 7% to 10% at constant currency for fiscal 2027, up from a previous forecast of 5% to 10%.
The company also expects adjusted EBIT margin expansion of 60 to 80 basis points from fiscal 2026, compared with a prior outlook of 40 to 80 basis points. For the half-year period ended November 1, it expects adjusted operating profit of between £87 million and £89 million, compared with £66 million reported a year earlier.
Watches of Switzerland said it has limited direct exposure to the Middle East, where geopolitical tensions have weighed on parts of the luxury sector. "As we head towards the important holiday season, trading momentum remains good in both markets, but we continue to plan prudently," the company said.