Watches of Switzerland has upgraded its full-year guidance after better-than-expected sales during the peak trading period.
The luxury watch specialist reported trading was strong in both the UK and the US during the 13 weeks to January 25, 2026, aided by investments in marketing, client experience and showroom development.
It noted that demand for the group’s key luxury brands “remains strong and continues to outstrip supply in both the UK and US markets”.
Watches of Switzerland said its US arm delivered sustained broad-based growth across categories, brands and price points, which reflected the strength of client demand and effectiveness of the group’s operating model.
Trading in the UK across luxury watches and jewellery was consistent with recent periods, it said.
During the period, the group acquired Texas-based retailer and Rolex distributor Deutsch & Deutsch and its four showrooms in the state. The deal means Watches of Switzerland now operates 25 Rolex-anchored showrooms in the US.
As a result of continued strong trading and the acquisition, Watches of Switzerland has upgraded its sales growth in constant currency to fall between 9% and 11%, up from previous expectations of 6% to 10%.
It anticipates EBIT margin to fall 70 to 90 basis points, compared to the flat to 100 basis points drop it had originally forecast. The retailer noted that margin was expected to improve during the second half.
The revised outlook reflects the impact of brand margin adjustments, product mix, one-off items relating to Roberto Coin department store debtor provisions, as well as infrastructure investments in US ecommerce and group marketing.
Watches of Switzerland chief executive Brian Duffy said: “I am pleased to report another period of strong performance, building on the sales momentum established in the first half and reflecting strong trading over the holiday period.
“We were also delighted to acquire Deutsch & Deutsch, comprising four Rolex-anchored showrooms in Texas with a portfolio including other key luxury watch and jewellery brands. This acquisition strengthens our presence in this key US market.
“It is particularly pleasing to be achieving these results despite an unusually volatile operating environment, including macroeconomic uncertainty and tariffs, and they are a testament to the collective contribution of our colleagues, which will be reflected through our staff incentive arrangements.
“Looking ahead, we remain focused on further cementing our market position across both the US and UK, underpinned by our differentiated model, longstanding brand partnerships and disciplined execution.”
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