REG - Watches of Switzlnd. - Q3 FY26 Trading Update

Watches of SwitzerlandAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260204:nRSD5952Ra&default-theme=true

RNS Number : 5952R  Watches of Switzerland Group PLC  04 February 2026

4 February 2026

 

Watches of Switzerland Group PLC

Q3 FY26 Trading Update

for the 13 weeks to 25 January 2026

 

Continued positive sales growth in both US and UK

Strong Holiday season trading

 

Trading throughout Q3 FY26, including the Holiday trading period, was strong
across the Group, consistent with trends in the first half of the year and
with sales growth ahead of expectations. Demand for the Group's key luxury
brands remains strong and continues to outstrip supply in both the UK and US
markets.

 

The US delivered sustained broad-based growth across categories, brands and
price points, reflecting the strength of client demand and the effectiveness
of the Group's operating model. The Roberto Coin marketing campaign, alongside
a continued focus on ranging and merchandising, is driving excellent sales
performance in the North American market.

 

On 22 January 2026, the Group announced the acquisition of Deutsch &
Deutsch, comprising four Rolex-anchored showrooms in Texas. The acquisition
strengthens the Group's presence in a key US market and is highly
complementary to our existing portfolio. The initial integration is
progressing well, and the Group looks forward to realising the strategic
benefits of the acquisition.

 

In the UK, trading conditions across luxury watches and jewellery were
consistent with recent periods. The Rolex Old Bond Street boutique has
maintained its excellent momentum, benefiting from our best-in-class client
experience. The Group is sharing key insights from this showroom across the
estate to support the continued elevation of its best-in-class luxury retail
proposition.

 

We continue to be encouraged by the performance of our Certified Pre-Owned
business in both the US and UK markets.

 

Investments in marketing, client experience, showroom development and Hodinkee
supported our trading performance. US ecommerce delivered good growth
following investment in new systems and dedicated teams, and we expect to
scale this proposition with minimal further infrastructure investment.

 

Brian Duffy, Chief Executive Officer, 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 is 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,
long-standing brand partnerships and disciplined execution."

 

Outlook

 

Following the acquisition of Deutsch & Deutsch and the continued strong
trading of the Group during Q3 FY26, we are updating our FY26 guidance as
follows:

 

                                    Updated               Previous
 Sales growth in constant currency  9% to 11%             6% to 10%
 EBIT margin %(1)                   -70 bps to -90 bps    Flat to -100 bps
 Capital expenditure                £65 to £70 million    £65 to £70 million

 

We expect EBIT margin % to improve in the second half of the year compared
with the first half. Updated guidance reflects the impact of brand margin
adjustments, product mix, and one-off items relating to Roberto Coin
department store debtor provisions as well as infrastructure investments in US
ecommerce and Group marketing. These investments will support growth and
profitability in future years.

 

The Group is exposed to movements in the £/$ exchange rate when translating
the results of its US operations into Sterling. The actual average exchange
rate for FY25 was $1.28.

 

(1)EBIT margin % is earnings before interest and tax before IFRS 16
adjustments divided by revenue

 

Q3 FY26 Trading Update Conference Call

A webcast conference call for analysts and investors will be held at 9.00am
(UK time) today. To join the call, please use the following details:

 

Webcast details:

Register at: https://brrmedia.news/WOS_Q3_2026
(https://brrmedia.news/WOS_Q3_2026)

 

Conference call dial-in details:

United Kingdom: +44 (0) 33 0551 0200

United Kingdom (Toll-Free): 0808 109 0700

Password: Watches of Switzerland Q3

 

Contacts
 The Watches of Switzerland Group
 Anders Romberg, CFO                                                             +44 (0) 207 317 4600
 Caroline Browne, Group Finance and Investor Relations Director                  +44 (0) 116 281 7420
 investor.relations@thewosgroup.com (mailto:investor.relations@thewosgroup.com)

 Headland
 Lucy Legh / Rob Walker / Scarlett Hateley                                       +44 (0) 203 805 4822
 wos@headlandconsultancy.com (mailto:wos@headlandconsultancy.com)

 
About the Watches of Switzerland Group

The Watches of Switzerland Group is the UK's largest luxury watch retailer,
operating in the UK and US comprising eight prestigious brands; Watches of
Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US),
Betteridge (US), Deutsch & Deutsch (US), Analog:Shift (US) and Hodinkee
(US), with a complementary jewellery offering. Since 8 May 2024, the Group has
also owned the exclusive distribution rights for Roberto Coin in the US,
Canada, Central America and the Caribbean.

 

As at 25 January 2026, the Watches of Switzerland Group had 199 showrooms
across the UK and US including 83 dedicated mono-brand boutiques in
partnership with Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand
Seiko, Roberto Coin, BVLGARI and FOPE and has a leading presence in Heathrow
Airport with representation in Terminals 2, 3, 4 and 5 as well as seven retail
websites.

 

The Watches of Switzerland Group is proud to be the UK's largest retailer for
Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.

www.thewosgroupplc.com (http://www.thewosgroupplc.com)

 

Disclaimer

This announcement has been prepared by Watches of Switzerland Group PLC (the
'Company'). It includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "anticipates", "expects", "intends", "plans", "goal",
"target", "aim", "may", "will", "would", "could" or "should" or, in each case,
their negative or other variations or comparable terminology. They appear in a
number of places throughout this announcement and the information incorporated
by reference into this announcement and may include statements regarding the
intentions, beliefs or current expectations of the Company Directors or the
Group concerning, amongst other things: (i) future capital expenditures,
expenses, revenues, earnings, synergies, economic performance, indebtedness,
financial condition, dividend policy, losses and future prospects; (ii)
business and management strategies, the expansion and growth of the Group's
business operations; and (iii) the effects of government regulation and
industry changes on the business of the Company or the Group.

 

By their nature, forward-looking statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future and may be beyond the Company's ability to control or
predict. Forward-looking statements are not guarantees of future performance.
The Group's actual results of operations, financial condition, liquidity, and
the development of the industry in which it operates may differ materially
from the impression created by the forward-looking statements contained in
this announcement and/or the information incorporated by reference into this
announcement.

 

Any forward-looking statements made by or on behalf of the Company or the
Group speak only as of the date they are made and are based upon the knowledge
and information available to the Directors on the date of this announcement,
and are subject to risks relating to future events, other risks, uncertainties
and assumptions relating to the Company's operations and growth strategy, and
a number of factors that could cause actual results and developments to differ
materially from those expressed or implied by the forward-looking statements.
Undue reliance should not be placed on any forward-looking statements and,
except as required by law or regulation, the Company undertakes no obligation
to update these forward-looking statements. No statement in this announcement
should be construed as a profit forecast or profit estimate.

 

Before making any investment decision in relation to the Company you should
specifically consider the factors identified in this document, in addition to
the risk factors that may affect the Company or the Group's operations as
detailed above.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTAKNBPOBKDABK



            Copyright 2019 Regulatory News Service, all rights reserved