Luxury watches retailer Watches of Switzerland Group has reported a strong performance for the financial year 2025 (FY25), with group revenue reaching £1.65bn ($2.2bn), an 8% growth in constant currency compared to the previous year.
The record revenue was driven by improved second half (H2) trading performance, continued excellent strategic and operational progress.
Go deeper with GlobalData
The revenue increased 12% in H2 of FY25 compared to a 4% rise in H1 indicating a strong year-end momentum.
Luxury watches experienced a modest 2% revenue growth in constant currency, with demand for key brands continuing to outstrip supply in both the US and UK markets.
Rolex Certified Pre-Owned has emerged as the group’s second-largest luxury watch brand equivalent.
Luxury jewellery revenue saw a 108% surge in constant currency, primarily driven by the acquisition of Roberto Coin, which also contributed to US revenue climbing to £786m. This represents a 16% increase in constant currency, with a notable improvement to 19% in H2 FY25.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUK and Europe revenue also experienced growth, albeit at a more modest rate of 2%, with a sequential improvement of 6% in H2.
The group’s showroom expansion and refurbishment programme saw an expansionary capital expenditure of £73m, including the opening of four new showrooms and the refurbishment or expansion of 11 others.
Adjusted earnings before interest and taxation (EBIT) for the group rose to £150m, a 12% increase in constant currency, with the adjusted EBIT margin improving to 9.1%.
However, reported operating profit saw a 5% decline to £114m. The group’s free cash flow was recorded at £98m, and net debt stood at £96m as of 27 April 2025, reflecting recent acquisitions.
Watches of Switzerland Group CEO Brian Duff stated: “As we look ahead, whilst we are of course remaining mindful of the broader macroeconomic and consumer environment, including potential US tariff changes, we remain confident in the strength of our diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories.”
The group has provided guidance for FY26, anticipating constant currency revenue growth of between 6% and 10% and an adjusted EBIT margin percentage ranging from flat to -100 basis points compared to the previous year.
In April, 2025, the group announced the impending closure of 16 of its showrooms in the UK, placing several jobs in jeopardy.
