Watches of Switzerland says UK luxury markets have stablised

UK demand for luxury watches and jewellery has continued to stabilise after a post-pandemic slump, according to Watches of Switzerland Group.

The London-listed luxury retailer, which returned to UK growth in 2024, told investors on Wednesday it had delivered ‘good year on year growth’ in the market where it is revamping a number of its stores.

It came as WOSG moved to reassure investors over the impact of US trade tariffs of 39 per cent on Swiss imports, which came into force in August and have weighed on the company’s shares.

WOSG shares soared in early trading after it said it does now anticipate ‘any material impact from the US tariffs’ in the first half.

The group told investors brand partners have increased inventories, citing data showing Swiss watch exports up 45 per cent in July year-on-year.

It follows separate data from the Federation of the Swiss Watch Industry that showed exports of prestige Swiss watches boomed in July as companies tried to shift their stock ahead of the tariffs brought into force on 7 August.

Watches of Switzerland said it delivered ‘good year on year growth’ in the UK, where it is revamping a number of its stores.

WOSG said US sales had been ‘particularly’ strong in the US over the 18 weeks to 31 August, lifted by ecommerce demand.

It opened or reopened outlets it Atlanta, Florida and Texas over the period, and new stores in Minneapolis and Florida are expected over the next 12 months.

WOSG has also signed leases for three new boutiques, and the construction of newly designed boutiques in Miami, New York and Las Vegas, to sell Roberto Coin-branded goods.

The group, which bought the Italian jewellery firm in 2024, has recruited US actress Dakota Johnson for an advertising campaign as part of efforts to promote and grow the brand.

In the UK, WOSG said it was ‘delighted with the success’ of its flagship Rolex Boutique on Old Bond Street, London.

‘The Rolex Certified Pre-Owned salon on the lower ground floor is fast becoming the destination for Rolex aficionados,’ it added.

WOSG is undergoing a ‘showroom development programme’, including the refurbishment of a store in Newcastle, and opening a joint venture outlet Manchester.

‘We will complete the Mappin & Webb Birmingham conversion, relocation of Goldsmiths Merry Hill, Birmingham and expansion of Goldsmiths Oxford,’ it added.

WOSG shares were up 7.1 per cent to 341.4p approaching midday, having lost almost 40 per cent since the start of the year. 

Analysts at Peel Hunt maintained a hold rating and a target price on WOSG shares of 370p.

They wrote in a note: ‘Given the weak performance of the shares, we suspect that they were expecting a shift in guidance down, or at least cautious words today. Neither of these things have emerged.

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