Watches of Switzerland Group – up 57% this year, will the share price growth continue, now 752p, results next week

Mark Watson-Mitchell - 06.07.2026

In the last week or so, there has been an absolute surge in the shares of the Watches of Switzerland Group (LON:WOSG), rising from 625p on Friday 26^th June to close last Friday night at 752p.

The shares were previously trading at around the 707p level before a statement out on Bloomberg on the 26^th suggested that, due to weaker luxury demand, the group was no longer pursuing its target of generating more than £3bn in annual sales by 2028.

According to its sources, Bloomberg suggested that the £1.75bn-capitalised London-listed watch retailer is now expected to announce fewer estimates with prescriptive time frames, however, it will continue to issue annual forecasts.

The report noted that the move reflects a broader slowdown in the luxury sector following weaker Chinese demand, elevated gold prices, currency volatility, and higher tariffs.

That hit the shares, down from 708p to as low as 625p at one point, before a support rally in price left them to close at 707.50p that night.

It wasn’t until the middle of last week that real backing for the group was shown, with some brokers actually raising their Target Prices for the shares.

Its shares were just 478p when I featured them on Tuesday, 2^nd December last year, so the subsequent rise to 752p has been more than pleasing with a 57% gain, more than beating the market’s 0.2% fall in the same period.

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.

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

The group is the UK's largest retailer for Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.

Final Results Due Next Week

On Tuesday, 14^th July, the group will report its Final Results for the 53 weeks to 3^rd May.

In the middle of May, the company stated that it expected to report a record group revenue of £1.8bn for that period, a 13% increase in constant currency, driven significantly by a 24% surge in its US revenue to $1.24bn, now representing over half of group sales.

Adjusted EBIT is expected to be between £152m and £155m, exceeding previous guidance.

The company reported that it 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 £67m, and strong performance in luxury watches and pre-owned sales.

Management Comment

Along with the Trading Update, CEO Brian Duffy stated that:

"FY26 marks another year of record revenue performance, up 13% in constant currency to £1.8bn, with growth accelerating across the business and strong underlying momentum as we continue to scale. 

FY26 Adjusted EBIT is expected to be £152 - £155m, ahead of previous guidance. 

The US continues to be the primary engine of growth, with revenue up 24% in constant currency to $1.24bn 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."

Outlook

The Trading Update also stated that its 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.

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 (5.04%), Capital Research & Management (5.01%), Schroder Investment Management (3.83%), Aegon Asset Management (3.04%), Alberta Investment Management (3.03%), Norges Bank Investment Management (2.83%), M&G Investment Management (2.62%), Select Equity Group (2.41%), and Vanguard Capital Management (2.43%).  

Brokers Views

There are nine analysts closely following the group, four of whom rate the shares as a Buy, one looks for them to Outperform, while the balance four class the shares as a Hold.

The consensus average Target Price is 662p, with the Lowest at 430p and the Highest at 850p.

The Highest TP was set last Thursday by UBS, having raised it from 600p previously, switching their upgrade to Buy (neutral) – noting there has been an accelerating demand for luxury timepieces in the US.

UBS analyst Zuzanna Pusz suggested that there was a resilient demand for Rolex, which accounts for more than half of group sales, and by accelerating trends across other high-end brands such as Cartier.

Pusz now forecasts constant-currency sales growth of 10% in the financial year to April 2027, ahead of both the market consensus and company guidance.

UBS believes the discount to the company's historical valuation is no longer justified.

The bank's new target restores a price-to-earnings multiple of around 15 times, broadly in line with the stock's long-run average.

My View

This group has a market-leading proposition and a proven track record.

It is relatively insulated from the wider luxury slowdown thanks to its lack of exposure to China and its high-end positioning, with an average selling price of around £8,000.

Next week’s results statement, due on Tuesday, 14^th July, will surely help to steady the market’s reactions, while still encouraging investor approval to participate in its ongoing growth.

(Profile 02.12.25 @ 478p set a Target Price of 550p*)

(Profile 02.02.26 @ 518p set a Target Price of 600p*)