Watches of Switzerland Group has reported record revenue for the financial year ended May 3, 2026, supported by strong consumer demand in the United States and continued resilience in the luxury watch sector.

The UK-based luxury watch retailer recorded annual revenue of £1.83 billion, marking a 13% year-on-year increase at constant currency and exceeding analyst expectations of approximately £1.78 billion. The company said US revenue rose 24% during the year, with the market now accounting for more than half of total group sales.

Watches of Switzerland operates across the UK, US and Europe and retails brands including Rolex, Patek Philippe, TAG Heuer, Omega, Audemars Piguet and Cartier.

The results reflect continued strength in affluent consumer spending within the global hard luxury segment, particularly in the US market, where demand for premium Swiss watches has remained robust despite inflationary pressures and broader economic uncertainty. Reuters reported that luxury spending among higher-income consumers has continued to outperform mid-market discretionary spending trends.

The retailer also upgraded its earnings outlook and projected organic revenue growth of 5% to 10% for FY2027. Shares in the company rose sharply following the announcement, reaching their highest level in more than two years.

However, the company noted ongoing pressure on operating margins due to rising precious metal costs, particularly gold, as well as one-off charges linked to its US operations. Chief Executive Brian Duffy said supplier price increases had affected profitability during the year, although retail price adjustments are expected to offset part of the impact over time.

The performance comes amid broader premiumization trends across the Swiss watch industry, where high-value timepieces continue to drive export growth even as entry-level volumes soften globally.