Watches of Switzerland upgrades growth forecasts for 2026
Watches of Switzerland Group has revised its growth forecast for the 2026 financial year, increasing expectations from 6% to 10% to a new range of 9% to 11%. With a turnover of £1.65 billion in FY2025, the updated forecast suggests total sales could reach between £1.8 billion and £1.83 billion. Despite this positive outlook, the company's share price dipped at the London Stock Exchange, reflecting market volatility and consumer sentiment challenges. The group noted strong demand for key luxury brands in both the UK and US markets, although profitability is expected to decline slightly, with EBIT margins forecasted between -0.7% and -0.9%. The company has expanded significantly since its previous operations solely in the UK, now encompassing eight businesses across North America and Europe, including a robust presence in the luxury watch sector. The recent acquisition of Deutsch & Deutsch has bolstered its footprint in Texas, while the group continues to adapt to a changing market landscape, focusing on high-value consumer segments. Additionally, Watches of Switzerland has been proactive in enhancing its leadership structure and optimizing its operations amid economic uncertainties, demonstrating resilience and a strategic approach to growth and investment opportunities in the luxury retail space.
