{"id":65479,"date":"2026-05-14T19:16:11","date_gmt":"2026-05-14T19:16:11","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/65479\/"},"modified":"2026-05-14T19:16:11","modified_gmt":"2026-05-14T19:16:11","slug":"watches-of-switzerland-ticks-toward-a-u-s-milestone","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/65479\/","title":{"rendered":"Watches of Switzerland Ticks Toward a U.S. Milestone"},"content":{"rendered":"

\"Watches Watches of Switzerland Ticks Toward a U.S. Milestone – Moby THE GIST <\/p>\n

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our #1 pick. Tap here.<\/a><\/p>\n

Watches of Switzerland just proved that while the rest of the luxury world is crying into its champagne, the demand for a “Registration of Interest” Rolex is still off the charts. The group reported a record \u20ac1.8 billion (about $2.1 billion) in revenue for the 2026 fiscal year, sending its stock price on a 15% tear.<\/p>\n

The secret sauce?<\/p>\n

A massive American expansion that has officially turned the UK\u2019s favorite watch shop into a U.S. powerhouse, with more than half of its sales now coming from across the Atlantic.<\/p>\n

WHAT HAPPENED <\/p>\n

Thursday\u2019s trading update was a victory lap for CEO Brian Duffy. The group announced that constant currency revenue jumped 13% to reach \u20ac1.8 billion, with the U.S. market acting as the primary turbocharger. Just eight years after entering the U.S., the region saw a 24% surge in sales, hitting $1.24 billion. For the first time in the company’s history, the US is now a bigger piece of the pie than its home market in the UK.<\/p>\n

The financial metrics were equally shiny. Adjusted EBIT (operating profit) is expected to land between \u20ac152 million and \u20ac155 million, comfortably beating previous guidance. This is particularly impressive given that the luxury sector has been hammered by rising raw material costs and “Trump tariffs” that squeezed margins earlier in the year.<\/p>\n

The company isn’t just selling new watches either. Its “pre-owned” and luxury jewelry divisions are gaining serious traction, with jewelry sales up 18%. The recent acquisitions of Roberto Coin and Deutsch & Deutsch are already paying dividends, helping the group move toward its goal of doubling sales and profit by 2028. Despite a “challenging macroeconomic backdrop” in the UK, demand remained resilient, with British sales up a modest but respectable 5%.<\/p>\n

WHY IT MATTERS <\/p>\n

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This isn’t just a story about expensive jewelry; it is a story about the “Rolex Moat.” While other luxury brands are struggling with a slowdown in Chinese spending and a general pullback in discretionary luxury, Watches of Switzerland is sitting on a backlog of demand that supply simply cannot meet. When your business model is built on “waitlists” for products that appreciate in value the moment you leave the store, you are largely insulated from the typical retail cycle.<\/p>\n

The shift toward the US is a massive strategic pivot that has finally reached its “major milestone.” By becoming the primary engine of growth, the US market provides a diversifier against the sluggish European economy. The “American watch collector” has proven to be a surprisingly durable species, seemingly unfazed by inflation or interest rates.<\/p>\n

However, the “cost of gold” and tariff uncertainty remain the flies in the ointment. With gold prices inflating the cost of luxury goods, keeping margins fat is becoming a high-wire act. The group expects to expand its EBIT margin by 40 to 80 basis points next year, but that depends on its ability to continue raising prices without scaring off the “aspirational” luxury buyer.<\/p>\n

There is also the debt question. Net debt fell to \u20ac57 million this year, down from \u20ac96 million, but the aggressive acquisition spree of 2025 and 2026 means the company is no longer the “net cash” fortress it once was. For now, a \u20ac1.4 billion market cap makes that debt look like a minor rounding error, but in a world where luxury spending can be fickle, investors will be watching the leverage closely.<\/p>\n

WHAT\u2019S NEXT <\/p>\n

The full results and a broader “growth strategy” update are scheduled for July 14. Investors will be looking for more detail on how the group plans to integrate its recent acquisitions and whether the “pre-owned” market can become a primary profit driver rather than just a side hustle.<\/p>\n

The outlook for next year is bullish, with management targeting 5% to 10% organic revenue growth. If the U.S. demand holds steady and the UK continues its “sequential improvement,” Watches of Switzerland might just be the rare growth stock that thrives in a high-rate environment.<\/p>\n

The “giddy heights” of 2022’s share price might still be a long way off, but the latest jump suggests that for the first time in years, the company\u2019s timing is finally perfect.<\/p>\n","protected":false},"excerpt":{"rendered":"Watches of Switzerland Ticks Toward a U.S. Milestone – Moby THE GIST Our analysts just identified a stock…\n","protected":false},"author":2,"featured_media":65480,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[35548,17,19369],"class_list":{"0":"post-65479","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-switzerland","8":"tag-roberto-coin","9":"tag-switzerland","10":"tag-watches-of-switzerland"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116574537986143434","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/65479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=65479"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/65479\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/65480"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=65479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=65479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=65479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}