Highlights

  • Watches of Switzerland US business delivered broad-based growth across brands, categories and price points during Q3 FY26, supported by favourable client demand.
  • Acquisition of Deutsch & Deutsch added four Rolex-anchored showrooms in Texas, strengthening the Group’s footprint in a key US market.
  • The company’s FY26 constant currency sales growth guidance upgraded to 9%–11%, from the previous 6%–10%.
  • The company’s capital expenditure guidance unchanged at GBP 65– GBP 70 million, supporting long-term growth.
  • The company’s EBIT margin expected to improve in H2 FY26 versus H1.

Watches of Switzerland Group PLC (LSE:WOSG) released its Q3 FY26 trading update on 4 February 2026 for the 13 weeks ended 25 January 2026, reporting continued positive sales growth across both the US and UK markets. Trading during the quarter, including the Holiday season, remained favourable and was consistent with trends seen in the first half of the financial year, with sales growth ahead of expectations.

Demand for the Group’s key luxury watch and jewellery brands continued to exceed available supply in both markets, supporting overall trading performance during the period.

US delivers broad-based growth

The US business recorded sustained and broad-based growth across categories, brands and price points during Q3 FY26. The Group attributed this performance to increasing client demand and the effectiveness of its operating model. The Roberto Coin marketing campaign, alongside a continued focus on ranging and merchandising, contributed to sales growth in the North American market.

Investments in marketing, client experience and infrastructure also supported trading, with US ecommerce delivering good growth following the rollout of new systems and the establishment of dedicated teams.

Deutsch & Deutsch acquisition strengthens US presence

On 22 January 2026, Watches of Switzerland announced the acquisition of Deutsch & Deutsch, which includes four Rolex-anchored showrooms located in Texas. The acquisition expands the Group’s presence in a key US market and is complementary to its existing portfolio.

The Group stated that initial integration is progressing well and expects to realise strategic benefits from the transaction over time.

Stable trading conditions in the UK

In the UK, trading conditions across luxury watches and jewellery were consistent with recent periods. The Rolex Old Bond Street boutique continued to perform favourably, supported by a focus on delivering a best-in-class client experience.

The Group is sharing insights from the Old Bond Street showroom across its wider estate to support the continued elevation of its luxury retail proposition in the UK market.

Certified Pre-Owned and ecommerce support performance

Watches of Switzerland reported continued encouragement from the performance of its Certified Pre-Owned business in both the US and UK. Investments in showroom development, marketing, client experience and Hodinkee supported trading during the quarter.

US ecommerce performance improved following investment in new systems and dedicated teams, with the Group expecting to scale this channel with minimal additional infrastructure investment.

Updated FY26 guidance reflects Favourable trading

Following Q3 FY26 trading and the acquisition of Deutsch & Deutsch, the Group updated its FY26 guidance. Watches of Switzerland now expects constant currency sales growth of 9% to 11%, compared with previous guidance of 6% to 10%.

EBIT margin is now expected to decline by 70 basis points to 90 basis points, compared with prior guidance of flat to a decline of up to 100 basis points. Capital expenditure guidance remains unchanged at GBP 65 million to GBP 70 million.

Margin outlook and investment focus

The Group expects EBIT margin performance to improve in the second half of FY26 compared with the first half. Updated guidance reflects the impact of brand margin adjustments, product mix changes, one-off items related to Roberto Coin department store debtor provisions, and continued infrastructure investments in US ecommerce and Group marketing.

Management stated that these investments are intended to support growth and profitability in future years.

WOSG shares were trading at GBX 510.50 per share at the time of writing on 04 February 2026.