**Summary of Watches of Switzerland Group PLC H1 FY26 Results**
**Overview**
Watches of Switzerland Group PLC reported strong H1 FY26 results, driven by robust growth in the US market. The Groups revenue increased by 10% in constant currency to £845 million, with adjusted EBIT rising by 6% to £69 million. The US market was the key driver, contributing nearly 60% of the Groups profitability, while the UK market showed resilience despite challenging conditions.
**Key Financial Highlights**
**Revenue Growth** Group revenue grew by 10% in constant currency and 8% at reported rates, reaching £845 million.
**Adjusted EBIT** Increased by 6% in constant currency to £69 million, with a margin of 8.1%.
**US Performance** US revenue rose by 20% in constant currency, contributing 48% of Group revenue and 59% of adjusted EBIT.
**UK Performance** UK revenue was flat at reported rates but showed resilience in a challenging market.
**Free Cash Flow** Improved by 71% to £48 million, with a conversion rate of 53%.
**Net Debt** Reduced by 7% to £112 million, with a leverage ratio of 0.6x net debt/EBITDA.
**Operational Highlights**
**US Expansion** Opened three new Roberto Coin mono-brand boutiques in New York, Las Vegas, and Miami.
**UK Showroom Development** Completed eight projects in H1 FY26, with six more completed post-period.
**E-commerce Growth** Group e-commerce revenue increased by 17% in constant currency, driven by digital investments.
**Certified Pre-Owned** Rolex Certified Pre-Owned is now available in all US Rolex agencies, with plans to expand in the UK.
**Strategic Initiatives**
**Roberto Coin Integration** Wholesale sales grew by 16% in constant currency, supported by new product launches and marketing campaigns.
**Hodinkee Integration** On track, with limited edition products selling out rapidly.
**Showroom Development** Ongoing investment in showroom expansions and relocations to enhance customer experience.
**Outlook**
The Group reiterated its FY26 guidance, expecting constant currency revenue growth of 6%-10% and a flat to slightly lower adjusted EBIT margin. Management remains confident despite external economic and geopolitical uncertainties, supported by strong demand for luxury watches and jewellery.
**Conclusion**
Watches of Switzerland Group PLC delivered a strong H1 FY26 performance, underpinned by robust US growth and resilient UK trading. The Groups strategic initiatives, including showroom development, e-commerce expansion, and brand integrations, position it well for continued growth. Despite external challenges, the Group remains confident in its differentiated offering and reiterated its FY26 guidance.