Watches of Switzerland beats forecasts as U.S. demand stays strong

Watches of Switzerland said U.S. demand stayed strong into its new financial year after annual profit and revenue came in above expectations, a sign that affluent buyers are still driving luxury watch sales even as spending remains uneven elsewhere. For the 53 weeks ended May 3, 2026, adjusted operating profit reached £155 million on revenue of £1.83 billion, ahead of analyst forecasts for £148.4 million and £1.78 billion.

The retailer said revenue rose 13% in constant currency to about £1.8 billion, marking another record year, while U.S. revenue climbed 24% in constant currency to $1.24 billion. The American business now accounts for more than half of group sales, making the United States the company’s main growth engine and a bigger part of its balance than the U.K. market, where revenue increased 5% year on year and improved sequentially in the second half.

That split is central to the company’s outlook. Watches of Switzerland said demand for key luxury brands on its Registration of Interest lists remained strong in both the U.S. and the U.K., with sales broadening across categories, brands, price points and regions. The company’s latest figures also showed statutory profit before tax rising 76% to £133 million, underscoring how premium pricing and demand from wealthy consumers continue to support margins.

The shares have reflected that momentum. They had rallied 55% this year to about £7.20 before easing slightly, although they remained below their 2022 peak. The stock’s rise has also been fed by talk of private equity interest and wider takeover speculation, with Brian Duffy, the chief executive, believing the market undervalues the business. No formal offer has been made.

Watches of Switzerland has also been expanding its U.S. footprint. It bought 88% of Deutsch & Deutsch, a Texas-based luxury watch and jewellery retailer, adding four showrooms and bringing its U.S. Rolex-anchored showroom count to 25. Net debt stood at £57 million after the deal. The company said it had a strong pipeline of showroom projects in both Britain and the United States and had made an encouraging start to FY27, suggesting the group expects the high-end consumer to keep outperforming the broader market.