The once-unstoppable Watches of Switzerland Group has been through a few challenging periods lately but on Thursday it reported “record revenue” in its latest year driven by “an improved H2 trading performance [with] continued excellent strategic and operational progress”.

There were a mix of numbers in the report for the year to April with some positive and some negative, so let’s look at those first. Group revenue increased by 7%, or 8% at constant currency (CCY), to reach £1.652 billion. That divided into a 2% rise in the UK and Europe to £866 million and a 14% rise (or 16% CCY) in the US to £786 million. 

The company had a number of exceptional costs to deal with but with those factored out, adjusted EBITDA was up 8% at £192 million and adjusted EBT increased 11% to £150, million. Meanwhile, operating profit fell 5% to £114 million and statutory profit before tax was down 18% at £76 million.

As mentioned, the performance improved a lot in the second half with group revenue up 12% compared to 4% in H1 on a CCY basis.

Luxury watches revenue increased 1% reported in the year and 2% CCY with demand for its key brands outstripping supply in both the US and UK markets. Its Certified Pre-Owned and vintage is performing strongly, with Rolex Certified Pre-Owned becoming the Group’s second largest luxury watch brand equivalent.

Particularly impressive was the increase in luxury jewellery revenue which was up 106% (or 108% CCY), boosted by the acquisition of Roberto Coin Inc. Luxury branded jewellery delivered double-digit growth.

Its pre-IFRS 16 guidance for FY26, which is a 53-week year, is based on the current US tariff rate of 10% maintained beyond the 90-day pause and currently announced margin changes from brand partners in response to the 10% tariffs remaining in place. 

As it stands today, the 10% tariff on imported goods from Switzerland has led some of its brand partners to put through mid-single-digit price increases in the US, alongside reducing their authorised distribution network’s margin percentage.

It expects CCY revenue growth between 6% and 10%. But the outcome of US tariff developments remains uncertain so that guidance could always change.

Tariffs uncertainty aside, CEO Brian Duffy was upbeat: “I am proud of the strong performance our team has delivered, underpinned by a significant trading improvement in H2. Our US business has continued its excellent momentum, surpassing $1 billion revenue for the first time, bolstered by the acquisition of Roberto Coin Inc. The UK has returned to growth as trading conditions have stabilised. Our performance reflects our differentiated business model, with our scale and leadership in our chosen markets, supported by long-standing, collaborative partnerships with world-leading brands across luxury watches and luxury branded jewellery underpinning sustained growth.”

He said it was a busy year for the group as it “continued to deliver on our strategy at pace”. A notable highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, “which is a great example of how we combine our retailing excellence and operational expertise to deliver a fantastic project for our brand partners and clients. We also delivered three key Rolex projects in the US across Texas, Florida and Atlanta, opened a new Patek Philippe room in Connecticut, and executed a range of additional showroom openings, expansions and upgrades”.

Duffy added that the company is “increasingly excited about the possibilities for our recently acquired Roberto Coin business in North America. Not only has it continued to trade well since acquisition, we see growing potential for this well-recognised brand in the large and growing US luxury branded jewellery market. We are pleased to have launched a marketing campaign featuring Dakota Johnson as a global brand ambassador and expect this and other pipeline projects to underpin our growth ambitions for the brand, including the opening of three mono-brand boutiques”.

He’s also encouraged by the strong performance of the Rolex Certified Pre-Owned programme in both the UK and US, and by the sustained growth in its pre-owned business more generally.

He said: “As we look ahead, whilst we are of course remaining mindful of the broader macroeconomic and consumer environment, including potential US tariff changes, we remain confident in the strength of our diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories.”