Story Highlight
– Watches of Switzerland raises 2026 growth forecast to 9%-11%.
– Full year sales expected between £1.8 billion and £1.83 billion.
– Profitability decline forecast slightly worse than previous predictions.
– Strong third quarter trading; luxury brand demand outstrips supply.
– WoSG shares fell but regained some value after opening.
Full Story
Watches of Switzerland Group has revised its growth forecast for the 2026 financial year, increasing its estimated growth from 6%-10% to a new range of 9%-11%. This update was disclosed in conjunction with a third-quarter trading statement.
The group’s turnover reached £1.65 billion for the financial year 2025, suggesting projected full-year sales of between £1.8 billion and £1.83 billion under the latest forecasts. However, profitability expectations have been slightly downgraded. The earnings before interest and tax (EBIT) margin, previously anticipated to remain stable or dip by 1%, is now expected to decline to between -0.7% and -0.9%.
The trading period for the crucial Q3, concluding on January 25, 2026, has been described as robust across the operations. “Demand for the group’s key luxury brands remains strong and continues to outstrip supply in both the UK and US markets,” the company stated.
In a notable shift from prior updates, the Q3 report did not include specific revenue or profit figures, with the company now planning to release financial results only in conjunction with half-year and full-year disclosures. Following this announcement, Watches of Switzerland Group’s shares experienced a decline at the start of trading on the London Stock Exchange, slipping from 514p to 490p, although they recovered somewhat after this drop. The stock has fallen from a six-month peak of 550p recorded on January 23.
Julie Palmer, managing partner at real estate advisory firm BTG, commented on the trading update. She warned that a decline in consumer spending could lead to people prioritising savings over luxury purchases. Nonetheless, she pointed out that segments of the luxury market, such as jewellery and watches, often show resilience, as consumers view high-quality items as investments. “The key for Watches of Switzerland Group and its UK brands is to capture that market of high, infrequent spenders offering a range that balances value and quality to suit a range of customer needs,” she noted.
In an investors’ call, CEO Brian Duffy remarked that consumer sentiment has slightly improved since the year’s start compared to the situation during the company’s last trading update, which occurred just before an unpredictable autumn budget. Palmer indicated ongoing challenges within the UK market but also highlighted the potential for a substantial enterprise like Watches of Switzerland Group to capitalise on these circumstances.
“Distressed jewellers across the UK, lacking the scale to absorb rising costs and debt collections, may struggle to survive,” she added. This scenario could provide acquisition opportunities for Watches of Switzerland, helping to expand their network and enhance the customer experience.
The group, which has grown significantly since acquiring Mayors in the United States in 2017, now operates multiple brands across North America and the UK, including Watches of Switzerland, Mappin & Webb, and Goldsmiths. The company’s portfolio has also diversified to include seven different e-commerce sites and eight distinct brands.
Notably, its Rolex Certified Pre-Owned segment ranks as the second highest revenue contributor, following new Rolex watch sales. The survey also highlighted the importance of its recent acquisitions, such as Deutsch & Deutsch, enhancing its presence in Texas and contributing to sales figures of $67 million in 2024.
As of late January 2026, the group manages 199 showrooms across the UK and the US, which includes numerous mono-brand boutiques in collaboration with luxury brands like Rolex, Omega, and Cartier. Furthermore, Watches of Switzerland Group holds a significant market share in the UK, being the largest retailer for key luxury brands.
At the beginning of the year, the company appointed a president for its US division, marking a strategic shift in leadership. Duffy expressed satisfaction with ongoing strong performance, particularly through the holiday trading period, and welcomed the acquisition of Deutsch & Deutsch. “I am pleased to report another period of strong performance, building on the sales momentum established in the first half,” he stated.
He acknowledged the challenges posed by a volatile operating environment, including macroeconomic uncertainties and tariffs, yet highlighted the positive results achieved despite these conditions. For its latest financial results, the group reported US revenues of £409 million, marking a 20% increase at constant currency rates, while UK revenues reached £436 million, reflecting a 2% rise.
