This is #10 in our "Twelve Stocks of Christmas 2025" Series. You can review the full set here.
The Pitch
- Watches of Switzerland (LON:WOSG) is the UK’s largest luxury watch retailer. While heavily associated with Rolex, it offers a full range that includes the likes of Patek Philippe, TAGHeuer, Breitling, etc.
- In the UK, its showrooms are concentrated in London, and in Heathrow and Gatwick airports, while also having a regional presence.
- In the US, it's in many cities and states including multiple sites in Las Vegas and New York. It also owns Roberto Coin Inc, the US distributor of Roberto Coin. In total, the group has 196 showrooms and seven retail websites.
US tariffs have been a major source of concern but with the rate on Swiss imports being confirmed now at 15% (after 39% had been threatened), this is a good moment to reassess the investment case.
The Big Picture
US tariff impact: the announcement of major US tariffs in April 2025 was a shock for the company and its share price, sending it lower by about 25%.
Charm offensive: the diplomatic Swiss visited the Oval Office in November and secured a deal in line with the EU (a 15% tariff), bringing great relief to Swiss industries.
Trading in line: recent interim results were in line with expectations, and the company reiterated guidance for FY April 2026. About 41p of EPS is expected, vs. a current share price of 488.2p.
Going Deeper
With the tariff scare out of the picture, WOSG can focus on its significant US opportunity.
Resilient US Demand for luxury. WOSG’s US sales were up 20% in H1, highlighting the opportunity for WOSG in this market.
This growth was achieved despite zero US store openings and 1 store US closure during H1.
Compared to April 2024 (when it had 56 stores), the company had only three extra US stores by October 2025 (59 stores). This makes the 20% increase in US revenue all the more remarkable: there was "sustained broad-based growth across brands and price points, reflecting the success of our model and the strength of client demand". WOSG has found more ways to sell more products to more people, using each its existing channels.
In total, WOSG’s total store count declined…
