The Watches of Switzerland – Interims due this week, analyst ups TP to 550p, shares 478p

Mark Watson-Mitchell - 02.12.2025

This coming Thursday, 4th December, will see The Watches of Switzerland Group (LON:WOSG) announce its Interim Results covering the 26 weeks to 26th October.

The group, which is the UK's largest retailer for Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches, despite retail sector challenges, enjoyed a strong first half.

Following the group’s early November Trading Update and ahead of this week’s announcement broker’s analysts have shown a somewhat mixed reaction in their views of the £1.15bn-capitalised business, ranging from a 370p Target Price up to a 590p Buy Rating.

As it happens, the group’s shares are currently trading at 478p, which is within a whisker of the consensus average for the 11 analysts following the group.

What stood out to me at the end of last week was that Deutsche Bank raised its Buy price target to 550p from 450p previously.

The Business

The Watches of Switzerland Group is the UK's largest luxury watch retailer, operating in the UK and US comprising seven prestigious brands; Watches of Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US), Betteridge (US), Analog:Shift (US) and Hodinkee (US), with a complementary jewellery offering.

Since May last year, the group has also owned the exclusive distribution rights for Roberto Coin in the US, Canada, Central America and the Caribbean.

The group has 196 showrooms across the UK and US, including 84 dedicated mono-brand boutiques in partnership with Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand Seiko, Roberto Coin, BVLGARI and FOPE.

It also has a leading presence in Heathrow Airport with representation in Terminals 2, 3, 4 and 5 as well as seven retail websites.

Management Comment

With last month’s Trading Update, CEO Brian Duffy stated that:

"We have delivered a strong first half, with Group revenue up 10% in constant currency, showing continued momentum across the Group reflecting the strength of our business model, disciplined strategy execution, and improved market trends.

The US has been the standout performer, with sales up 20% in constant currency, driven by broad-based growth across brands and categories throughout the period.

Investments in our teams, showrooms and digital offer are driving growth, while Roberto Coin is delivering excellent results as we implement our growth acceleration strategy in the first full year of ownership.

Our UK business performed well despite the challenges facing the UK High Street, with revenue up 2%.

The luxury watch market remains stable and our results demonstrate the quality of our brand portfolio and our focus on enhancing showroom productivity and client service.

The flagship Rolex boutique on Old Bond Street, the largest in Europe, continues to exceed expectations.

We delivered strong momentum in the first half of the year and are well placed for the Holiday trading period.

While we remain cognisant of economic and geopolitical uncertainties in the second half, including the impact of US tariffs, we are confident in delivering another year of strong sales growth and continued progress in consolidating our leadership in luxury watch and jewellery retailing.

We are reiterating our FY26 guidance for the full year."

Outlook

The Group has stated that whilst it is mindful of the uncertain economic and geopolitical backdrop, with strong momentum in the first half of the year, it is reiterating its FY26 guidance provided in July.

That is based on the current US tariff rates, and the Group’s brand partner and consumer responses to those tariffs to date.

The Group remain confident of delivering another year of strong sales growth and continued progress in consolidating its leadership in luxury watch and luxury jewellery retailing.

The Equity

There are some 239.6m shares in issue.

Institutional investors own around 81% of the group’s equity.

The larger holders include Capital Research & Management (5.15%), JP Morgan Asset Management (5.12%), Pelham Capital (5.12%), Schroder Investment Management (3.54%), BlackRock Investment Management (3.37%), Aegon Asset Management (3.04%), Alberta Investment Management (3.03%), Select Equity Group (2.94%), Norges Bank Investment Management (2.83%), and M&G Investment Management (2.45%).

Broker Views

For the year to end-April 2026 the consensus average, from the 11 analysts who follow the group, suggests sales will increase to £1,721m (£1,651m), with adjusted EBITDA of £187.5m (£192.3m), easing earnings to 39.9p (41.6p) per share.

In My View

With its proven track record and a market-leading proposition, I believe that The Watches of Switzerland Group offers a ‘quality’ status constituent for any investor’s portfolio.

I can understand the Buy rating that the analysts at Deutsche Bank have put out on the group’s shares, with that 550p Target Price

.

Achievement of that TP would see the shares on just 13.78p price-to-earnings – which in my view would be too low for such quality.