Watches of Switzerland Group – ahead of Finals in mid-July, investors ask after 50% rise is there still time to jump on or off, shares now 717p
- Mark Watson-Mitchell
- 3 hours ago
- 4 min read
Mark Watson-Mitchell - 05.06.2026
“We are seeing continued growth for luxury watches in the UK and US markets, a category which is underpinned by strong long-term fundamentals.
We have a leading UK position and have built a significant presence in the US” – states Brian Duffy, CEO
In just over a month’s time, on Tuesday 14th July, the £1.67bn-capitalised Watches of Switzerland Group (LON:WOSG) will be declaring its 2025/2026 Final Results.
We already know that they will be better than previous guidance indicated to investors.
Its shares were just 478p when I featured them on Tuesday, 2nd December last year.
They are now trading at around the 717p level, a clear 50% higher within the last six months.
Investors now question whether the shares are high enough until we have seen better detailed corporate statements.
The Business
The Watches of Switzerland Group is the UK's largest luxury watch retailer, operating in the UK and US comprising eight prestigious brands; Watches of Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US), Betteridge (US), Deutsch & Deutsch (US), Analog:Shift (US) and Hodinkee (US), with a complementary jewellery offering.
The Group also owns the exclusive distribution rights for Roberto Coin in the US, Canada, Central America and the Caribbean.
The Group has 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.
It also has a leading presence in Heathrow Airport with representation in Terminals 3, 4 and 5, as well as seven retail websites.
The Watches of Switzerland Group is the UK's largest retailer for Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.
Trading Update
On Thursday, 14th May, the Group reported record revenue of £1.8bn for the 53 weeks to Sunday 3rd May, showing a 13% increase in constant currency, driven significantly by a 24% surge in US revenue to $1.24bn, which now represents over half of Group sales.
The Adjusted EBIT is expected to be between £152.0m and £155.0m, exceeding previous guidance.
The company anticipates FY27 revenue growth of 5-10% in constant currency, with an adjusted EBIT margin expansion of 40-80 basis points.
Strategic progress includes the acquisition of Deutsch & Deutsch, showroom investments totalling £67.0m, and strong performance in luxury watches and pre-owned sales.
Outlook
FY27 guidance reflects current visibility of supply, pricing and margin from key brands and confirmed showroom refurbishments, openings and closures, and excludes uncommitted capital projects and acquisitions.
The Group is mindful of the geopolitical environment and will continue to closely monitor the situation and any wider impact on global consumer sentiment, but has minimal direct exposure to the Middle East, or tourist consumers.
Management Comment
CEO Brian Duffy stated that:
"FY26 marks another year of record revenue performance, up 13% in constant currency to £1.8 billion, with growth accelerating across the business and strong underlying momentum as we continue to scale.
FY26 Adjusted EBIT is expected to be £152 - £155 million, ahead of previous guidance. I would like to thank my colleagues for their continued commitment to delivering exceptional client service, which remains central to our success.
The US continues to be the primary engine of growth, with revenue up 24% in constant currency to $1.24 billion and now accounts for over half of Group sales.
This is a major milestone in the world's largest and fastest growing luxury watch market, achieved in just over eight years from entering the US.
In the UK, performance has improved despite the challenging macroeconomic backdrop, with resilient demand for luxury watches and jewellery.
Looking ahead, we enter FY27 with confidence and strong momentum, supported by the strength of our differentiated model, our leading market position, and the enduring demand across the luxury categories in which we operate.
Our growth pillars across the Group provide a clear runway for further progress, and with a strong pipeline of showroom projects in both the UK and US, alongside the recently acquired Deutsch & Deutsch locations, we are well positioned to build further on our success.”
The Equity
There are some 233.3m shares in issue.
Institutional investors own around 79.5% of the group’s equity.
The larger holders include JP Morgan Asset Management (5.12%), Pelham Capital (5.12%), BlackRock Investment Management (5.00%), Capital Research & Management (4.95%), Schroder Investment Management (3.51%), Aegon Asset Management (3.04%), Alberta Investment Management (3.03%), Select Equity Group (2.92%), Norges Bank Investment Management (2.83%), and M&G Investment Management (2.45%).
Broker Views
Two Buys and one Hold are the ratings of three brokers, following the stock, while the consensus Price target is 546.67p
Two weeks ago, on 19th May, RBC Capital Markets reiterated its Buy rating on the group’s shares, increasing the Target Price to 650p.
Four days prior to that Jefferies put out a Buy note with a 440p Target Price.
My View
The Group plans to announce FY26 results on Tuesday, 14th July, along with a broader update on its ongoing growth strategy.
On 2nd February this year, I wrote that the shares of this global group have strong appeal.
“It is a leader in its luxury marketplace, and it has shown a good track record over the years.
I featured the group two months ago at 478p, since when they have been up to 553p before easing back to 518p.
In my view they could well break well above the 600p level in 2026.”
Well, they have certainly beaten my price objective, currently trading at around the 717p level, after having peaked at 730.50p.
Despite the conservative Target Price estimates of the brokers following the group, I still like the shares, although there could well be some bouts of profit-taking after the recent run-up in price.
Such ‘top-slicing’ could provide ideal opportunities for investors to jump into a quality stock.
(Profile 02.12.25 @ 478p set a Target Price of 550p*)
(Profile 02.02.26 @ 518p set a Target Price of 600p*)
