Editor’s Note
**Editor’s Note:** Watches of Switzerland posts a record-breaking £1.83 billion in revenue, driven by surging U.S. demand and strong jewelry sales. The 11% annual growth marks a historic milestone, with the U.S. overtaking the UK as the group’s primary market.
The British luxury watch and jewelry giant Watches of Switzerland has presented an extraordinary annual report. Driven by strong demand from the United States and excellent performance in the jewelry segment, the company recorded revenues of £1.83 billion (approximately €2.1 billion). This result translates into an annual growth of 11% (rising to 13% at constant currency), leading the group’s management to define the just-concluded fiscal year as a “record” year.
The true engine of this expansion is undoubtedly the US market. With a leap of 18% (and even +24% at constant exchange rates), North American turnover reached £927 million. This is a historic moment for the group: for the first time, the United States has surpassed the British home market in terms of business volume, now accounting for over half of total revenues and generating 62% of operating profit. This boom was partly driven by excellent wholesale volumes of the Roberto Coin brand. On the domestic front, despite more cautious consumer spending by Her Majesty’s subjects, the UK managed to hold its own, closing at £901 million with an increase of 5%.
Analyzing the different product categories reveals a very interesting trend: high jewelry is growing faster than watches. This segment saw a jump of 14% (£238 million), largely fueled by American enthusiasm for Roberto Coin. Luxury watches remain the company’s backbone (representing 82% of total turnover at £1.5 billion) and maintain a solid growth rate of 10%. Also noteworthy are the excellent health of online sales (+21%) and the strong dynamism of the “Second Hand” (certified pre-owned) market, which now constitutes over 8% of watch-related revenues.
Looking at profit margins, EBIT (operating profit) stood at £155 million (+3%). There is only a slight contraction in margins (8.5%, down 60 basis points), mainly attributable to investments in digital for the US market, a decline in margins granted by partner brands, and an extraordinary write-down on a Roberto Coin wholesale client. However, liquidity is excellent: free cash flow nearly doubled to £162 million. This capital injection allowed the company to reduce net debt from £96 million to £57 million, while simultaneously financing the acquisition of the Texas-based chain Deutsch & Deutsch (with its four Rolex showrooms), finalized in January 2026.
CEO Brian Duffy did not hide his enthusiasm, emphasizing how the United States, the most dynamic luxury watch market globally, was conquered in just eight years since the group’s first landing overseas. Duffy also confirmed that the start of the new financial year shows encouraging signs: the long American wave continues, and glimpses of a clearer recovery are also emerging in the UK, where the company is focusing on high-profile showcases, such as the Rolex flagship boutique on Old Bond Street in London.
Finally, the company is at the center of some financial rumors. According to a recent Reuters report, Watches of Switzerland could be the subject of a privatization (delisting). Speculation about potential negotiations arises from the fact that, despite record results, the stock currently trades at values lower than the peaks reached in 2022.