**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 ยฃ845 million, with adjusted EBIT rising by 6% to ยฃ69 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 ยฃ845 million.
**Adjusted EBIT** Increased by 6% in constant currency to ยฃ69 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 ยฃ48 million, with a conversion rate of 53%.
**Net Debt** Reduced by 7% to ยฃ112 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.
Here is the comparison of financials and debt year on year presented as an HTML table:
### Key Highlights:
- **Revenue Growth**: Group revenue increased by 8% at reported rates and 10% at constant currency, driven by robust US growth.
- **Profitability**: Adjusted EBIT grew by 4% at reported rates and 6% at constant currency, with a slight margin compression due to changes in gross margin rates and product mix.
- **Profit Before Tax**: Statutory profit before tax increased significantly by 50%, reflecting strong operational performance.
- **Free Cash Flow**: Improved by 71%, supported by disciplined inventory management and strong operational cash generation.
- **Net Debt**: Decreased by 7%, indicating improved financial health and debt management.
- **Return on Capital Employed (ROCE)**: Improved by 80 basis points, reflecting efficient capital deployment and robust profitability.