Watches of Switzerland (LON:WOSG) raised its full-year revenue guidance on Wednesday after strong holiday trading, but a tighter margin outlook kept shares under pressure.
Shares slipped 3.8% after the announcement but had pared some of those losses by mid-morning, trading around 510.50p.
The group now expects full-year sales growth at constant currency of 9% to 11%, up from 6% to 10% previously. Revenue for the 52 weeks to April 27, 2025, reached £1.65 billion, an 8% increase year on year at constant currency.
The company now forecasts EBIT margins down 0.7% to 0.9%, slightly better than its previous flat-to-1% decline outlook. Management expects margins to improve in the second half of the financial year. Capital expenditure guidance remains £65 million to £70 million.
Trading in the 13 weeks to January 25, the financial third quarter, was described as strong across both UK and US operations. Demand for luxury brands continues to exceed supply, particularly in North America, where campaigns like Roberto Coin have boosted performance.
The group’s expansion in the US through acquisitions such as Deutsch & Deutsch is progressing well. Watches of Switzerland now operates eight brands across the UK and US, including Watches of Switzerland, Mappin & Webb, Goldsmiths, Mayors, Betteridge, Deutsch & Deutsch, Analog:Shift, and Hodinkee, plus seven e-commerce sites.
CEO Brian Duffy said achieving strong results despite macroeconomic uncertainty and tariffs highlights the resilience of the group’s model.