Watches of Switzerland Reaffirms Outlook as U.S. Demand Drives Growth

By JCK News Desk | September 03, 2026

Watches of Switzerland Group confirmed its fiscal 2027 outlook after reporting what it called encouraging trading momentum during the 17 weeks ended Aug. 30, with strong performance in the United States and signs of improvement in the U.K.

The luxury watch retailer said demand was broad-based across its key brands, with growth supported by several strategic initiatives including luxury jewelry, certified pre-owned watches, and e-commerce. The company also noted that the integration of recently acquired Deutsch & Deutsch, a Texas jewelry and watch retailer, is progressing well and contributing positively to results.

Based on trading so far this fiscal year, the U.K.-based company reaffirmed its expectation for revenue growth of 5% to 10% at constant currency and forecast adjusted EBIT margin expansion of 40 to 80 basis points. It also maintained guidance for capital expenditures of £60 million to £70 million and free cash flow conversion of approximately 70%.

The retailer continues to invest in its showroom network on both sides of the Atlantic. In July, it opened a new multi-brand Watches of Switzerland showroom in Avalon, Ga., and said an existing Mayors location there is being converted into a dedicated luxury jewelry showroom.

The company also reported recently completed expansions and refurbishments at two U.K. stores and said additional openings are planned before Christmas in Scotland, Connecticut, and New Jersey.

Bloomberg reported that the company now generates more than half of its revenue in the United States, underscoring the importance of the American market to its growth strategy. The news service also noted that analysts viewed unchanged guidance as consistent with expectations for a more challenging second half of the year, even as recent U.S. demand trends have remained strong.

“We believe that unchanged full-year guidance reflects expectations of a likely less dynamic second half, but we do not sense major changes in sales trends in the U.S. in more recent weeks,” analysts for the Jefferies investment bank wrote in a note cited by Bloomberg.

Watches of Switzerland has expanded rapidly in the United States over the past decade through showroom openings and online sales growth, while maintaining limited exposure to the Chinese market compared with some luxury-goods peers.

The company operates 186 showrooms across the U.K. and United States and holds exclusive distribution rights for Roberto Coin in the United States, Canada, Central America, and the Caribbean. Its retail brands include Watches of Switzerland, Mappin & Webb, Betteridge, Goldsmiths, and Hodinkee. The company also operates dozens of boutique stores dedicated to Rolex, Omega, Audemars Piguet, and other prominent watch brands.

The JCK News Desk uses AI to help research and produce the first draft of articles. This story was then reviewed by staff writer David Blomquist.

(Photo courtesy of Watches of Switzerland)