3rd Jul 2025 09:36
(Alliance News) - Watches of Switzerland Group PLC on Thursday reported higher annual sales, boosted by a strong US performance, but pointed to margin pressure in the coming financial year.
In response, shares in the Leicester, England-based watch and jewellery retailer lost 6.1% to 396.00 pence each in London on Thursday morning.
Pretax profit fell 18% to GBP76 million in the 52 weeks to April 27 from GBP92 million a year prior.
Revenue rose 7.1% to GBP1.65 billion from GBP1.54 billion a year ago, or by 8% at constant currency. The firm noted a "significant" trading improvement in the second half of the financial year, with revenue up 12% year-on-year.
Sales figures were in line with numbers provided in a trading statement in May.
Revenue in the US jumped 14% but grew a more modest 2.4% in the UK & Europe. In the second half, US sales increased 19% and in the UK & Europe by 6%.
"Our US business has continued its excellent momentum, surpassing USD1 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," Watches of Switzerland said.
US jewellery manufacturer Roberto Coin, bought in 2024 for USD130 million, continues to trade well, the company said, adding, "we are increasingly excited about the possibilities" for the business.
Watches of Switzerland said it remains confident in the strength of its "diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories."
For financial 2026, the company expects constant currency revenue growth of 6% to 10%.
It predicts an adjusted earnings before interest and tax margin percentage of flat to down 100 basis points versus 11.6% in the financial year to April 30, 2024.
"As we enter FY26, we are mindful of the uncertain macroeconomic backdrop, geopolitical developments, potential US tariff changes, and their potential impact on consumer confidence", the company said.
The company sees capital expenditure in the current financial year of GBP65 million to GBP70 million, slowing from GBP73 million.
No dividend was declared. In the event of surplus capital,"we would consider returns to shareholders either through ordinary dividends or share buybacks", Watches of Switzerland said.
In March, the company launched a share buyback programme worth GBP25 million.
By Jeremy Cutler, Alliance News reporter
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