Watches of Switzerland Shares Inch Up Amid Reassuring Trading Update Ahead of AGM

Watches of Switzerland Group (LON: WOSG) shares edged higher on Thursday as the luxury watch and jewellery retailer reiterated its full-year guidance in an AGM trading update, as investors appeared to bank profits on an otherwise solid statement.

The Group said trading momentum in the 17 weeks to 30 August 2026 remained consistent with the positive trends reported at its FY26 results. The US business continued to perform strongly, while the UK showed further signs of market improvement.

Demand was described as broad-based across key luxury brands, with growth pillars Luxury Jewellery, Certified Pre-Owned and Ecommerce all contributing diversified growth. The recent Deutsch & Deutsch integration was also said to be progressing well and positively impacting performance.

On expansion, Watches of Switzerland confirmed its showroom development programme remains on track. In the US, a new multi-brand showroom opened in Avalon, Georgia in July, with the existing Mayors Avalon site being converted into a dedicated luxury jewellery location.

In the UK, refurbished Goldsmiths showrooms in Chelmsford and Watford have reopened. Further openings—including Rolex Glasgow, Betteridge Greenwich, Connecticut, and new sites in Marlton, New Jersey—are expected before Christmas.

The Group reiterated FY27 guidance of 5-10% constant-currency revenue growth, 40-80bps of adjusted EBIT margin expansion, capex of £60-70 million, and free cash flow conversion of around 70%.

Despite the confident tone and unchanged guidance, the modest share price decline suggests the market had already priced in continued momentum, with investors perhaps seeking fresh upside catalysts or wary of currency headwinds from sterling-dollar movements affecting US earnings translation.