Watches Of Switzerland Group PLC

Watches of Switzerland Group outlined a strategy focused on U.S. expansion, pre-owned watches, and jewelry growth as its UK market shows signs of recovery. The U.S. business generated $1.24 billion in sales in fiscal 2026, representing 51% of group sales, up from 24% in fiscal 2019, with a compound annual growth rate of 26.4% over that period. Pre-owned watches grew from 1.6% of group sales in fiscal 2019 to 8.3% in fiscal 2026, with 77% of pre-owned clients new to the group. The company also highlighted jewelry as a major opportunity, citing a U.S. luxury jewelry market of nearly $65 billion and strong early results from Roberto Coin shop-in-shops. Chief Executive Officer Bryan Duffy confirmed fiscal 2027 guidance and said the Swiss watch market remains characterized by demand exceeding supply.

Analysts covering Watches of Switzerland Group have raised their price targets, with UBS shifting to a Buy rating and lifting its target to 850 GBp from 600 GBp, while RBC Capital increased its target to 650 GBp from 560 GBp but maintained a Sector Perform rating. A valuation model updated its fair value estimate to £6.62 from £5.41, reflecting higher revenue growth, profit margin, and future P/E multiple assumptions alongside a lower discount rate. UBS cited structural U.S. luxury trends and a favorable brand mix as potential drivers for further earnings upgrades, while RBC Capital signaled caution on execution and expectations already priced into the stock.