Watches of Switzerland FY adjusted EBIT seen ahead of previous guidance

(Sharecast News) - Luxury watch retailer Watches of Switzerland said on Thursday that full-year adjusted underlying earnings were now expected to come in ahead of previous guidance after group revenue and sales grew.

Watches of Switzerland said revenues grew 13% at constant currency to �1.83bn, or 11% excluding its 53rd week, with demand for key luxury brands remaining robust across the UK and US. Luxury watch sales also grew 13% at constant currency, while luxury jewellery outperformed with an 18% uplift.

The FTSE 250-listed firm highlighted that the US had again led the charge, with revenues up 24% at constant currency and now accounting for more than half of group sales and profit. Retail revenue in the region climbed 25%, supported by broadbased growth across brands, categories and regions. UK revenues increased 5% yearonyear, with momentum improving through the second half, particularly in luxury jewellery and preowned.

Preowned sales rose 22%, with further rollout of Rolex Certified PreOwned in the UK, while e-commerce revenue grew 21% at constant currency.

As a result, adjusted underlying earnings were now expected to land between �152m and �155m, ahead of prior guidance, reflecting the stronger topline performance. Net debt closed the year at �57m following its acquisition of Deutsch & Deutsch.

Looking ahead, Watches of Switzerland said its FY27 guidance of 5% to 10% constant currency revenue growth and a 40 to 80 basis point expansion to its adjusted EBIT margin reflected confirmed supply, pricing and showroom plans, while noting limited direct exposure to geopolitical hotspots and touristdriven demand.

As of 0900 BST, Watches of Switzerland shares had rallied 13.09% to 600.50p.

Reporting by Iain Gilbert at Sharecast.com

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