Watches of Switzerland Group (LON: WOSG) delivered a full-year trading update that sent shares climbing 14% to around 605p on the London Stock Exchange, after the luxury watch retailer reported revenues well ahead of both its own guidance and market consensus.
Group sales for the 53 weeks to May 3, 2026 reached £1.83 billion, representing 13% growth in constant currency and 11% in reported terms. Stripping out the benefit of the additional 53rd week, constant currency growth still came in at 11%, which removes the obvious objection that the headline number was flattered by the calendar.
The standout figure in the entire report is the US revenue line. American sales reached £1.24 billion, up 24% in constant currency on the prior year, and the division now accounts for more than half of group sales and profit. That is a milestone that has significant strategic implications for how investors should frame the company going forward. Watches of Switzerland entered the US market just eight years ago and has built it into the majority of its business in a remarkably short timeframe.
CEO Brian Duffy addressed the milestone directly during the trading update webcast: “We are now more than 50% U.S. business. It is the best market to be in right now. Long may it continue.” That confidence is grounded in tangible performance rather than aspiration. US retail revenue grew 25% in constant currency, with particularly strong trading in New York, Florida and Texas. The geographic concentration in high-income, wealth-effect-driven markets is a deliberate strategic choice that has paid off materially.
UK revenues grew 5% for the full year, a more modest number that tells a different story about consumer dynamics in the domestic market. The UK performance is improving sequentially rather than accelerating dramatically, with Duffy describing conditions in the second half as “solid.” Pre-owned watches, luxury jewellery and online sales were the standout UK contributors, which points to the growth in the business now coming from categories that carry healthier margin profiles than straightforward new watch retail.
The pre-owned segment deserves particular attention. Duffy confirmed during the call that pre-owned has effectively become the group’s second-largest brand category, which is a remarkable commercial achievement given how recently the channel was scaled. The Rolex Certified Pre-Owned programme is now available across all US locations and is being extended to remaining UK doors during the current fiscal year. CFO Anders Romberg stated that “the health of our inventory has never been as good as it is today,” which reflects an improved approach to procurement and stock management across the business.
Full-year adjusted EBIT is now expected to land between £152 million and £155 million, ahead of the guidance that had been communicated previously. Barclays raised its price target on the stock to 725p from 645p and maintained an overweight rating, while Jefferies noted the implied 3-4% EBIT beat and described the update as confirmation of “strong US demand and less subdued conditions in the UK.” Peel Hunt described the numbers as showing “rare momentum” and said consensus forecasts for FY27 would likely rise, noting the stock trades on around 11x earnings, which the broker described as “about right” given the forecast momentum on offer.
FY27 guidance projects constant currency revenue growth of 5% to 10% on a 52-week basis, which adjusting for the shorter comparative year translates to an effective range of 7% to 12%. Margin expansion of 40 to 80 basis points is also expected, driven by operational leverage, brand mix improvements and the non-repeat of a Roberto Coin-related write-off from FY26, which Romberg estimated at £3 million to £4 million in analyst models. The Roberto Coin Chapter 11 proceedings, which created a one-time cost drag last year, are now closed.
The question of US tariffs came up during the analyst call. Duffy was clear that import tariffs are paid by the watch brands themselves rather than directly by Watches of Switzerland, meaning the easing of tariff pressure flows through to the company by relieving pricing and margin pressure from brand partners rather than landing directly on the group’s cost base. That distinction matters because it means the tariff tailwind is indirect but still meaningful when it translates into pricing flexibility from suppliers.
The company operates 191 showrooms across the UK and US, including 81 dedicated mono-brand boutiques in partnership with Rolex, OMEGA, TAG Heuer, Breitling, Tudor, Longines, Grand Seiko, Roberto Coin, Bvlgari and FOPE. That mono-brand footprint gives the group significant structural advantages in terms of brand exclusivity and supplier relationships that are not easily replicated by competitors without the same depth of partnership history. Full-year results are scheduled for July 14, 2026, at which point management has indicated a broader update on growth strategy will also be provided.
