Watches of Switzerland plans 5-10% revenue growth
Watches of Switzerland plans 5-10% revenue growth
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Key Points
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In the US, Watches of Switzerland opened a new Watches of Switzerland multi-brand showroom in Avalon, Georgia in July, and work is under way to convert the existing Mayors Avalon showroom into a dedicated luxury jewellery location.
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In the UK, several showrooms were reopened or refurbished, including Goldsmiths Chelmsford and Goldsmiths Watford, with additional openings planned before Christmas such as Rolex Glasgow, Betteridge Greenwich (Connecticut) and a new Watches of Switzerland and Mayors showroom in Marlton, New Jersey.
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Analysts highlighted the stock’s valuation context, noting RBC’s view that Watches of Switzerland’s 2027 price/earnings around 13x, enterprise value/EBIT around 12x and EV/revenue around 1.2x are broadly in line with historical averages.
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The group reiterated its plan for its first-half trading update on November 10, 2026, followed by first-half results on December 10, 2026, as part of its AGM cycle.
Watches of Switzerland is sticking with its full-year plan to grow revenue by 5% to 10% at constant currency, while expanding profit margins by 40 to 80 basis points in FY27. The Retail Bulletin reports the luxury watch and jewellery retailer reaffirmed guidance after strong US performance and improving UK market conditions, despite some profit-taking that pulled the stock down in London trading.
The company is pushing ahead with showroom expansions and strategic acquisitions. New luxury locations are opening before Christmas in Glasgow, Connecticut, and New Jersey, while the integration of German jeweller Deutsch & Deutsch continues to boost performance. Growth is broad-based across luxury brands and newer business lines like certified pre-owned watches and online sales.
US Momentum Drives Expansion Plans
The United States remains the company's strongest market. Market Screener notes that Watches of Switzerland opened a new multi-brand showroom in Avalon, Georgia in July and is converting an existing Mayors location into a dedicated luxury jewellery store. Betteridge Greenwich in Connecticut and a combined Watches of Switzerland and Mayors showroom in Marlton, New Jersey, are also launching before the holiday season.
UK Market Recovery Accelerates Store Upgrades
After months of weakness, the United Kingdom is showing signs of improvement. The company has reopened and refurbished key locations including Goldsmiths Chelmsford and Goldsmiths Watford. A flagship Rolex showroom is opening in Glasgow before Christmas, signaling confidence in renewed demand and the company's ability to invest in premium retail space.
Deutsch & Deutsch Acquisition Lifting Performance
The integration of German luxury jeweller Deutsch & Deutsch is progressing smoothly and driving measurable gains. Market Screener reports that the acquisition is positively impacting overall group performance and helping fuel growth in the jewellery segment. The deal has strengthened the company's position in European luxury retail and expanded its customer base across key markets.
Valuation Remains Disciplined Amid Stock Pullback
Despite upbeat guidance, Watches of Switzerland shares fell in London trading as investors took profits. Market Screener notes that RBC pegs the stock's 2027 valuation at 13x price-to-earnings, 12x enterprise value to EBIT, and 1.2x EV-to-revenue — all roughly in line with historical norms. The company will update the market on November 10, 2026, followed by full half-year results on December 10, 2026.
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