Watches of Switzerland Record £1.65 bn FY25 Revenue, Forecasts 6 %–10 % Growth

Market News

Watches of Switzerland, a leading luxury watch and jewellery retailer, has just released its full-year results for FY25, ending 27 April 2025. The company reported a record-breaking £1.65 billion in revenue. What led to this milestone, and what lies ahead?

Quick Summary:

  • FY25 revenue: £1.65 billion (up 8 %)
  • Strongest growth in the US market (+16 %)
  • EBIT margin: 9.1 %

What drove record revenue

Strong demand in both the United States and the United Kingdom played a key role:

  • US sales surged 16 % to £786 million, topping $1 billion for the first time.
  • UK and Europe grew modestly by 2 % to £866 million 

Why is the US market performing so well?

The US market’s growth reflects consumer appetite for luxury timepieces and jewellery. Plus, the acquisition of Roberto Coin Inc. added momentum, doubling jewellery revenue.

How the full year shaped up

FY25 highlights at constant currency:

  • Revenue: £1.652 billion, up 8 %
  • Adjusted EBIT: £150 million, up 12 %
  • Adjusted EBIT margin: 9.1 % (versus 8.8 % in FY24)

The second half surged with 12 % revenue growth, outperforming the first half’s 4 % rise . This shows a strong performance rebound in late FY25.

Strategic investments and expansions

A robust investment programme was central:

  • £73 million capex funding for four new showrooms and refurbishing eleven 
  •  Opened flagship stores, including a Rolex boutique on Bond Street and a Patek Philippe room in Connecticut
  • US expansions also include new Rolex outlets in Texas, Florida, Atlanta, and Pittsburgh

    What about digital and brand moves
  • Integrated Hodinkee, enhancing online presence 
  • Launched new Roberto Coin marketing campaign with Dakota Johnson 
  • Upgraded US ecommerce site, with UK roll-out planned

While revenue set new records, statutory profit before tax fell 18 % to £76 million due to showroom costs and property impairments (notably £43.6 million).

However, adjusted operating profit reached £150 million, slightly above expectations (consensus ~£148.8 million).

Future outlook: cautious but confident

The company expects 6 %–10 % constant currency revenue growth in FY26 . They’re prepared for flat or slightly lower adjusted EBIT margins due to ongoing US tariffs and brand price adjustments .

Tariffs are a notable challenge. US 10 % duty on Swiss imports may pressure margins if passed on by brands. Management remains in talks with partners, including Rolex and Cartier.

What analysts are saying

Jefferies analysts highlighted margin pressure risks, noting margin flatness might weigh if tariffs continue .
Meanwhile, RBC analysts warned that Swiss watch export declines (–5% value, –7% volume) could threaten long-term targets.

Why this matters

  • A diversified model of luxury watches, branded jewellery, and pre-owned offerings helps reduce risk.
  • The US push strengthens long-term growth prospects as it becomes the company’s biggest market.
  • Strategic store openings and e‑commerce upgrades support the omnichannel approach.

Final take

Watches of Switzerland (WOSG.L) delivered an impressive FY25 with record revenue and strong adjusted profit. While margin pressures and tariffs present challenges, their targeted US expansion, strategic M&A, and luxury focus offer a strong foundation. The 6 %–10 % growth forecast for FY26 is sensible and reflects measured confidence.

Disclaimer

This content is for informational purposes only and not financial advice. Always conduct your research.