Watches of Switzerland Shares Up 50% in 2026, but the Run May Be Maturing

Watches of Switzerland shares (LSE: WOSG) have gained 50% so far in 2026, comfortably outpacing a FTSE 250 that is up just 3% over the same period and putting the luxury watch retailer back in focus for UK investors after a difficult few years.

The recovery is built on a foundation that would have looked unlikely not long ago. WOSG spent much of 2022 and 2023 weighed down by concerns over slowing luxury demand and margin compression. The stock still sits roughly 50% below where it opened 2022, which gives some sense of the ground it had to lose in the first place and the theoretical headroom that remains.

The US Is Doing the Heavy Lifting

The engine of the turnaround is American, not British. Full-year figures to April 2026 showed US revenue up 24% in constant currency to £927m, which now accounts for over half of Group sales. The company described the US as “the primary engine of growth,” and the H1 FY26 trading update (the 26 weeks to 26 October 2025) confirmed the direction: Group revenue rose 10% in constant currency, with US sales up 20% in constant currency. UK luxury demand, by contrast, has been more muted, and that divergence is a genuine consideration for any investor running a portfolio with heavy domestic exposure.

Alongside the organic expansion, WOSG acquired Roberto Coin Inc. for $130 million on 8 May 2024, securing exclusive distribution rights and ownership of the Roberto Coin brand across the United States, Canada, Central America, and the Caribbean. In a presentation, WOSG described Roberto Coin as the sixth largest jewellery brand by retail value in the United States, according to JCK. Roberto Coin Inc. operates as a stand-alone business within the Group, with the founding family retaining a seat on its board. Forbes reported at the time that the deal was a clear signal of the Group’s intent to move beyond watches and deepen its American footprint in jewellery.

Pre-owned is also pulling its weight. Sales in that segment were up 22% against the prior year, helped by the continued roll-out of Rolex Certified Pre-Owned across the UK portfolio. It opens the category to buyers unwilling or unable to pay new-watch prices, and it is a structurally more resilient segment when consumer budgets tighten.

What Drives Watches of Switzerland Shares From Here

The earnings picture has improved in step with the revenue momentum. Adjusted earnings before interest, taxes, and amortisation were guided to land between £152 million and £155 million for the full year, which the company described as ahead of previous guidance, according to the Foreign Policy Journal.

At 707.50p, WOSG sits just 3.61% below its 52-week high of 734.00p, reached on 22 June 2026. After a 50% run year-to-date, a significant portion of the recovery appears priced in. Investors arriving now are not buying the turnaround at a discount.

The risk case is not subtle. Luxury spending is cyclical, and expensive watches are precisely the category consumers defer when economic pressure builds. The US is carrying the Group; if American consumer spending softens, or if sterling strength erodes the translation of those revenues, the earnings upgrade cycle could stall quickly. The $130 million Roberto Coin acquisition adds jewellery diversification, but integrating a deal of that size while managing an aggressive US store-opening programme carries execution risk of its own.

The 50% gap to 2022 levels suggests there is still recovery headroom in theory. Whether the next leg comes from the UK catching up or the US sustaining its pace is the binary the market is now pricing. With Watches of Switzerland shares barely off a 52-week high, a more patient entry point may present itself if the macro backdrop deteriorates through the second half of 2026.