Watches of Switzerland Group has shaken off the impact of tariffs and continued to deliver robust performance across its luxury watch and jewellery portfolio, with trading in the 18 weeks to August 31st meeting company expectations.
A trading statement released on Wednesday was heavily focused on operational progress, but the luxury retailer did say it has maintained consistently strong performance in both the UK and US markets, with the company on track for a solid first half of fiscal year 2026.
Investors cheered the news, and shares were trading 6% higher at the time of writing.
Rolex Flagship Store Exceeds Expectations
The crown jewel of recent developments has been the flagship Rolex Boutique on London’s Old Bond Street. The store has surpassed initial projections, generating excellent client response and securing impressive traffic levels and conversion rates.
The boutique’s lower ground floor features a Rolex Certified Pre-Owned salon, which is rapidly establishing itself as the go-to destination for Rolex enthusiasts seeking authenticated pre-owned timepieces and alleviating concerns about a slowdown in demand for second-hand luxury watches.
US Market Shows Resilience
Despite concerns over increased tariffs on Swiss imports, the US market has demonstrated remarkable stability and will continue to be a key growth market for the firm.
The company’s American operations continue to show strong year-over-year growth, supported by an upgraded e-commerce platform that has boosted online sales significantly.
Roberto Coin Acquisition Paying Dividends
The May 2024 acquisition of Roberto Coin Inc. is delivering strong results. The luxury jewellery brand has benefited from a high-impact advertising campaign featuring Dakota Johnson as global brand ambassador.
Three new mono-brand Roberto Coin boutiques are under construction in Miami, New York, and Las Vegas, scheduled to open in the third quarter of fiscal 2026.
Expansion Plans in Full Swing
The company’s aggressive showroom development programme continues across multiple locations.
Recent completions include the refurbishment of Northern Goldsmiths in Newcastle and the opening of Audemars Piguet AP House in Manchester through a joint venture partnership. Manchester is also home to a new Mappin & Webb Luxury Jewellery Boutique opened on September 4th, featuring geographical exclusivity for several luxury brands, including the company’s first De Beers mono-brand boutique.
Management remains optimistic about performance in the key UK and US markets and expects a minimal impact from US tariffs in the first half, as brand partners have significantly increased their inventory levels.
In July, the company guided for constant currency revenue growth of 6%-10%. This is unchanged.
The certified pre-owned business continues to show strong growth potential, with the company identifying this as a key opportunity across both UK and US markets. Registration of Interest lists continue to expand, indicating sustained consumer demand for luxury timepieces.