Watches of Switzerland Group PLC (LON:WOSG) has announced its 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, Watches of Switzerland Group 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.
1EBIT margin % is earnings before interest and tax before IFRS 16 adjustments divided by revenue
