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Watches of Switzerland Q3 Sales Surge, Raises Guidance

Investing.com •
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Watches of Switzerland Group PLC (LON:WOSG) posted robust Q3 sales, with the US and UK markets driving growth. The retailer credited its Roberto Coin campaign and the recent Deutsch & Deutsch acquisition, adding four Rolex‑anchored showrooms in Texas, to sustain demand that outpaced supply today.

Holiday trading pushed sales beyond expectations, while the Certified Pre‑Owned segment performed strongly in both regions. U.S. e‑commerce grew after deploying new systems and dedicated teams, and integration of Deutsch & Deutsch proceeds smoothly, reinforcing the company's foothold in a key U.S. market for customers.

The firm lifted its fiscal 2026 guidance, now targeting sales growth 9‑11% in constant currency versus the prior 6‑10% range. EBIT margin is expected to shrink by 70‑90 basis points, a modest decline from the earlier flat to 100‑basis‑point drop forecast. CEO Brian Duffy praised the momentum.

Investors will watch how the guidance shift reflects broader luxury‑watch resilience amid tightening supply chains. The acquisition of Deutsch & Deutsch adds strategic value, while the updated margin outlook signals tighter cost control. Analysts suggest the sector may see a modest rebound as demand stabilizes.