Watches of Switzerland Upgrades FY26 Outlook After Strong Q3 Trading and US Growth

Watches of Switzerland Group PLC (LSE:WOSG) reported better-than-expected sales growth in the third quarter of FY26, supported by resilient demand for luxury watches and jewellery across both the US and UK. Trading over the key Holiday period was particularly strong, with management pointing to broad-based momentum in the US market alongside solid performance in the UK.

The group said growth in the US was driven by effective marketing and merchandising initiatives, including strong results linked to the Roberto Coin jewellery brand, while flagship UK locations such as the Rolex boutique on Old Bond Street delivered encouraging momentum. Additional contributions came from the Certified Pre-Owned segment and the continued expansion of the US ecommerce platform. The recently completed acquisition of Deutsch & Deutsch, which adds four Rolex-focused showrooms in Texas, was described as strategically significant and integrating well, strengthening the group’s presence in an important US luxury market.

Reflecting the stronger trading performance and the impact of the acquisition, Watches of Switzerland upgraded its FY26 constant-currency sales growth guidance to a range of 9–11%, up from the previous 6–10%. The company also flagged an expected EBIT margin decline of 70–90 basis points, driven by brand margin resets, changes in product mix, one-off items and continued investment in US ecommerce and marketing. Management said these investments are intended to support sustainable growth and profitability over the medium term.

Overall, the outlook for Watches of Switzerland is underpinned by strong financial performance and positive sentiment from recent earnings commentary, particularly around the US business. Technical indicators point to a supportive trend for the shares, although valuation levels and leverage remain areas investors continue to monitor closely.

More about Watches of Switzerland Group PLC

Watches of Switzerland Group PLC is the UK’s largest luxury watch retailer, operating 199 showrooms across the UK and US. The group trades under brands including Watches of Switzerland, Mappin & Webb, Goldsmiths, Mayors, Betteridge, Deutsch & Deutsch, Analog:Shift and Hodinkee, alongside a complementary jewellery offering. It partners with leading watchmakers such as Rolex, OMEGA, Cartier, TAG Heuer and Breitling, operates 83 mono-brand boutiques and multiple airport and online outlets, and holds exclusive US and regional distribution rights for Roberto Coin jewellery.