Watches of Switzerland said it is “well placed” for the golden quarter after delivering a strong first half and a “robust” performance in the United States.
The luxury retailer reported pre-tax profits were up 50% to £61m in the 26 weeks to October 26, with a strong international performance helping to offset slightly weaker UK trading.
It reported that its US business now made up 60% of the group’s profitability while it continued to navigate a “challenging retail environment” in the UK.
Group sales rose 8% in the half to £845m, boosted by a 20% jump in US sales to £409m.
Watches of Switzerland said demand for luxury watches remained strong through the period and luxury jewellery made up 12% of total revenues.
The retailer cited a “resilient” performance in its UK business, as revenues edged up 2% in the half to £436m or 5% when adjusting for showroom closures.
Watches of Switzerland chief executive Brian Duffy said: “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.
“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.
“While 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.”
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