Watches of Switzerland Group (WOSG) Q3 2026 TU earnings summary

Executive summary

• Q3 FY26 saw strong sales growth in both US and UK, with demand for key luxury brands outstripping supply and performance ahead of expectations.

• The group completed the acquisition of Deutsch & Deutsch, adding four Rolex-anchored showrooms in Texas and strengthening its US presence.

• Targeted investments in showroom development, e-commerce, marketing, and Hodinkee are supporting current and future profitability.

• Certified Pre-Owned business performed well in both US and UK.

• US market saw broad-based growth across categories, brands, and price points, supported by effective marketing and merchandising.

Financial highlights

• Revenue guidance for FY26 was raised to 9%-11% constant currency growth, up from the previous 6%-10% range.

• EBIT margin for the full year is expected to be -70 to -90 basis points versus the prior year, reflecting margin adjustments, price increases, investment costs, and one-off items.

• Capital expenditure guidance maintained at £65–£70 million.

• EBIT margin expected to improve in H2 FY26 versus H1.

Outlook and guidance

• Improved profitability is expected in the second half and future years, supported by recent investments and the Deutsch & Deutsch acquisition.

• Updated guidance reflects brand margin adjustments, product mix, and one-off items including Roberto Coin debtor provisions and US ecommerce investments.

• The group maintains good visibility for the remainder of the year and expresses confidence in achieving the updated revenue guidance.

• Investments in marketing and infrastructure are expected to support future growth and profitability.

• Exposed to £/$ exchange rate movements; FY25 average rate was $1.28.