Watches of Switzerland lifts outlook floor as US, UK demand remains strong

Nov 10 (Reuters) - Luxury retailer Watches of Switzerland Group raised the lower end of its annual outlook on Tuesday following strong first-half trading driven by robust demand in the United States and Britain.

• The Leicester-based company expects revenue growth of 7%-10% at constant currency for the 2027 fiscal year, up from its previous forecast of 5%-10%, and adjusted EBIT margin expansion of 60 to 80 basis points from fiscal year 2026, compared with a prior outlook of 40 to 80 basis points

• Watches of Switzerland CEO Brian Duffy told Reuters that more affordable luxury watch brands were enjoying a "very good recovery" in Britain after a difficult period in 2023 and 2024, when higher prices weighed on demand following the pandemic

• He said demand in the United States remained strong, supported by wealth creation and resilient spending by affluent consumers

• Duffy said the company had "not seen any impact at all" from the US midterm elections and was not anticipating any impact in the current fiscal year

• Watches of Switzerland's shares rose nearly 6%

• The company also expects adjusted operating profit of between £87 million ($116.99 million) and £89 million for the half-year period ended November 1, compared with £66 million reported a year earlier

($1 = 0.7437 pounds)

(Reporting by Alessandro Parodi in Paris and Ankita Bora in Bengaluru; Editing by Sherry Jacob-Phillips and Joe Bavier)