Watches of Switzerland Group has reported a return to growth in the second half of its financial year, which concluded at the end of April, driving full-year sales to £1.65 billion, a rise of 8% at constant currency.
Growth was driven mainly by the group’s performance in the United States, where sales rose by 16% in FY25. The UK and Europe saw sales increase by 2%.
After a challenging start to the financial year — May to September 2024 — sales rebounded to deliver 12% growth in the October to April period.
UK sales rose by 6% and America was up by 19%.
The past six months has seen WoSG open a flagship Rolex boutique on London’s Bond Street in addition to a number of completed projects in the United States with new stores in Plano, Texas and Jacksonville, Florida; plus the conversion of a multibrand Mayors showroom to a Rolex boutique in Lenox, Atlanta.
“As we look ahead, we remain confident in the strength of our business model, our strong pipeline of showroom openings and the resilience of the luxury watch category where demand for key brands continues to outstrip supply,” says WoSG CEO Brian Duffy.
The company’s financial year ended in April amid the uncertainty of President Trump’s intentions on tariffs for Swiss imports, and the ensuing impact on consumer confidence, US stock markets, gold prices and the strength of the Swiss franc.
Addressing the headwinds, Mr Duffy said the group is “mindful of the broader macroeconomic and consumer environment, including potential US tariff changes.”
WoSG’s share price has risen almost 5% in this morning’s trading to £4.08, the first time it has broken the £4 barrier since April 2, the week of Mr Trump’s tariff announcement that, briefly, slapped a 31% additional tax on all imports from Switzerland.
A 10% additional tariff remains, which has contributed to a second round of price rises in the United States for watch brands this year, although most were low single-digit increases.
That uncertainty had only a temporary impact on demand, according to commentary accompanying the Watches of Switzerland financial results.
“Demand for our key luxury brands, particularly products on registration of interest lists, remains strong, outstripping supply in both the US and UK markets,” the company says.
“In the US, following a temporary period of consumer uncertainty in response to the initial tariff announcement, we have seen a return to normalized trading patterns in April. We are cognisant that the US tariff situation is currently unresolved, making it more difficult to predict future US trading patterns,” the statement adds.
WoSG’s share price has been clipped since its biggest competitor, Bucherer, was bought by Rolex in 2023, leading to speculation that Bucherer would receive preferential treatment when it came to investment and allocation of watches from its new owner.
That deal was almost two years’ ago, and there appears to have been little impact on WoSG’s expansion with Rolex.
In addition to the new Rolex boutique in London, the retailer also grown operations with the brand with the completion of New Rolex agencies at a relocated Watches of Switzerland in Plano, Texas, a refurbished Mayors in Jacksonville, Florida showrooms and the conversion of Mayors Lenox, Atlanta, into a 3,000 square foot Rolex boutique.
Importantly, Watches of Switzerland is back in the Audemars Piguet market after opening an AP House in Manchester, UK, in May.
That relationship could compensate for fewer Patek Philippe doors. From four Patek Philippe doors in 2023 in the UK, WoSG is now down to one, its enlarged space within its Regent Street flagship showroom.
Both brands and retailers in the luxury watch sector are moving towards fewer, but larger and more prestigious stores.
For Watches of Switzerland Group, this may have influenced the decision to close 16 regional UK showrooms in April, including Goldsmiths, Mappin & Webb and monobrand watch boutiques at the same time it was opening its Rolex megastore in Mayfair.
Providing guidance on the current financial year may seem futile given the current economic uncertainties, but WoSG says it is remains confident.
“As we enter FY26, although we are mindful of the uncertain macroeconomic backdrop, including potential US tariff changes, we remain confident in the strong fundamentals of the luxury watch category and our differentiated business model in the underdeveloped US market,” the company states.
Work already underway will see the opening of a refurbished Northern Goldsmiths in Newcastle, expansions or relocations of a further six UK showrooms, a new Watches of Switzerland in Minneapolis, its first in Minnesota, and the relocation of its Mayors store in Sarasota, Florida’s, University Town Centre.
The company will also launch an upgraded US Watches of Switzerland ecommerce website in Q1 FY26 with further sites launching for Mayors and Betteridge during the year.