Watches of Switzerland lifts outlook floor as US, UK demand stays strong

Watches of Switzerland Boosts Outlook Following Strong US and UK Sales

Financial Performance and Market Insights

Upgraded Annual Outlook

Nov 10 (Reuters) - Luxury retailer Watches of Switzerland Group on Tuesday raised the lower end of its annual outlook after strong first-half trading, driven by robust demand in the US and Britain.

Revenue Growth Expectations

• The Leicester-based company expects revenue growth of 7%-10% at constant currency for fiscal 2027, up from its previous forecast of 5%-10%, and adjusted EBIT margin expansion of 60-80 basis points from fiscal 2026, compared with its prior outlook of 40-80 basis points

Geopolitical Exposure

• Watches of Switzerland has limited direct exposure to the Middle East, where geopolitical tensions have weighed on parts of the luxury sector

Trading Momentum and Seasonal Outlook

Holiday Season Expectations

• "As we head towards the important holiday season, trading momentum remains good in both markets, but we continue to plan prudently," the company said

Operating Profit Forecast

• It also expects adjusted operating profit of between £87 million ($116.99 million) and £89 million for the half-year period ended November 1, compared with £66 million reported a year earlier

Currency Exchange Rate

($1 = 0.7437 pounds)

(Reporting by Ankita Bora in Bengaluru; Editing by Sherry Jacob-Phillips)