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

Watches of Switzerland Group has revised upward its annual outlook for fiscal 2027 following a strong first-half trading period. The company attributes this positive outlook to robust demand in the United States and Britain, which has driven revenue growth expectations of 7%-10% at constant currency, up from the previous forecast of 5%-10%.

Additionally, Watches of Switzerland anticipates an expansion of its adjusted EBIT margin by 60-80 basis points from fiscal 2026, contrasting with its earlier outlook of 40-80 basis points.

The company has minimal direct exposure to the Middle East, where geopolitical tensions have adversely affected certain segments of the luxury industry. As the important holiday season approaches, trading momentum remains favorable in both the US and UK markets. However, Watches of Switzerland emphasizes its continued prudent planning for the future.

Moreover, the company forecasts adjusted operating profit between £87 million ($116.99 million) and £89 million for the half-year period ending November 1, compared to the £66 million reported in the previous year.