Watches of Switzerland: Analyst Confident Demand Environment is Improving

Goldman Sachs said in a note that they have increased confidence in demand for Watches of Switzerland Group (LON: WOSG) following its latest holiday trading update. 

Last week, the company reported that trading for fiscal Q3 2025 (November to January) was in line with expectations, with strong demand for key luxury brands continuing to outstrip supply in both the UK and US markets.

“The key takeaway is that trading is in line with the company’s expectations and that demand for key luxury brands continues to outstrip supply in both the US and UK markets,” said Goldman Sachs.

The bank added that positive industry commentary from Swiss watch export data, Richemont, LVMH, and Swatch is further evidence of an improving demand environment. 

“Following robust industry commentary (Swiss watch export data, Richemont, LVMH, Swatch) we have increased confidence of an improving demand environment across WOSG’s markets,” stated Goldman.

The firm expects H2 2025 and FY26 to benefit from WOSG’s ongoing showroom expansion, acquisitions, and new brand partnerships.

In its update, WOSG highlighted strong performance from its pre-owned business and the recently acquired Roberto Coin brand in North America, which Goldman Sachs also highlighted as a positive. 

The UK market has seen further stabilisation, while the US market continues to gain momentum. The company also pointed to its differentiated business model and showroom investments as key drivers of market share growth.