Watches of Switzerland Group plc Q4 2026 Earnings Recap

Shares gained 3.8% following a solid top-line beat driven by strong U.S. sales growth and a broadly positive execution on growth initiatives, partially offset by margin pressure linked to tariffs and gold price inflation.

Key Takeaways

• Group revenues increased 13% in constant currency to GBP 1.828 billion, led by 25% growth in the U.S. market, which now accounts for 51% of sales.
• Adjusted EBIT rose 6% in constant currency to GBP 155 million, though margin contracted by 60 basis points to 8.5%, affected by tariff-related brand margin reductions and higher gold prices.
• Pre-owned segment grew 22%, with luxury branded jewelry Roberto Coin up 20%, benefiting from successful retail upgrades and advertising.
• The U.K. market grew a modest 5%, improving in H2 and showing signs of stabilization despite subdued broader consumer conditions.
• Investments included GBP 66 million in showrooms and the acquisition of Deutsch & Deutsch, supporting expansion in key U.S. territories and the pre-owned channel.