Watches of Switzerland has upgraded its sales guidance for its 2026 financial year (FY), after better than expected trading over the key holiday quarter.

The luxury watch retailer forecast revenues for FY26 to jump between 9% and 11% in constant currency, compared to its prior guidance of 6% to 10%.

With group sales coming in at £1.65bn for FY25, this pushes the brand’s full year sales forecast to between £1.8bn and £1.83bn. 

Despite this, the business reduced its profit margin forecast for the period. Earnings before interest and taxes (EBIT) margin percentage, which was previously forecast to be flat at -1%, is now expected to be between -0.7% and -0.9%.

The company said the decline was driven by brand margin resets, changes in product mix, one-off products, as well as continued investment in US ecommerce and marketing.

Revenues for the 13 weeks to 25 January 2026 also rose above internal expectations, the business said.

In a statement, Watches of Switzerland said: “Demand for the group’s key luxury brands remains strong and continues to outstrip supply in both the UK and US markets.”

CEO Brian Duffy said: “I am pleased to report another period of strong performance, building on the sales momentum established in the first half and reflecting strong trading over the holiday period.”

“It is particularly pleasing to be achieving these results despite an unusually volatile operating environment, including macroeconomic uncertainty and tariffs.”

He added: “Looking ahead we remain focused on further cementing our market position across both the US and UK, underpinned by our differentiated model, long-standing brand partnerships and disciplined execution.”

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