Leicester-based luxury retailer Watches of Switzerland Group raised the lower end of its annual financial outlook on Tuesday, Nov. 10, 2026. The company cited strong demand in the United States and Britain during the first half of the fiscal year as a driver for the adjustment.
The update follows a period of growth that included what the company described as encouraging trading momentum through August. Watches of Switzerland, which is the top Rolex seller in Britain, now generates more than half of its total revenue from the U.S. market.
For fiscal 2027, the company expects constant currency revenue growth between 7% and 10%, an increase from the previous range of 5% to 10%. The retailer also projected its adjusted EBIT margin to expand by 60 to 80 basis points compared to fiscal 2026. This is an increase from the prior forecast of 40 to 80 basis points.
For the half-year period ending Nov. 1, 2026, the company expects adjusted operating profit between £87 million ($116.99 million) and £89 million. This represents an increase from the £66 million reported during the same period the previous year. The company noted that while momentum remains positive heading into the holiday season, it intends to continue planning prudently.
The company's decision to raise its outlook floor follows strong first-half trading. The retailer also reported limited direct exposure to the Middle East, a region where other luxury sectors have seen sales impacted by geopolitical tensions.
The company reported a significant increase in half-year operating profit, rising from £66 million to a projected high of £89 million, a difference of £23 million year-over-year. This growth occurred even as the company anticipated more challenging market conditions in the months ahead.
The shift in revenue distribution, with over 50% now coming from U.S. consumers, marks a change in the company’s geographic dependence. The next major reporting milestones will follow the conclusion of the fiscal 2027 period.