Watches of Switzerland to hit expectations as sales rise

Watches of Switzerland reported growth in both the UK and US in the half, generating a rise in group revenue of 12%. Over the full year, that means growth is 8% at constant currency and full year adjusted EBIT is expected to be “in line with market expectations”.

Chief executive Brian Duffy said: “A highlight in H2 was the opening of the new flagship Rolex boutique on Old Bond Street, London, in which we were able to bring our retailing excellence and operational strength to bear.

“Trading since launch has exceeded our expectations. We delivered several key Rolex projects in the US, including the brand’s introduction in Plano, Texas, its reintroduction in Jacksonville, Florida, and the conversion of Mayors Lenox in Atlanta into a 3,000 sq ft Rolex boutique.

“As we look ahead, we remain confident in the strength of our business model, our strong pipeline of showroom openings and the resilience of the luxury watch category, where demand for key brands continues to outstrip supply. We are, of course, mindful of the broader macroeconomic and consumer environment, including potential US tariff changes.”

The retailer noted: “In the US, following a temporary period of consumer uncertainty in response to the initial tariff announcement, we have seen a return to normalised trading patterns in April. We are cognisant that the US tariff situation is currently unresolved, making it more difficult to predict future US trading patterns.”