**Summary**
Watches of Switzerland Group PLC released its Q3 FY26 trading update on February 4, 2026, highlighting strong performance across both the US and UK markets. Key points include
1. **Sales Growth**Continued positive sales growth, exceeding expectations, driven by strong demand for luxury brands in both regions.
2. **US Performance**Broad-based growth across categories, brands, and price points, supported by the Roberto Coin marketing campaign and the acquisition of Deutsch & Deutsch, which added four Rolex-anchored showrooms in Texas.
3. **UK Performance**Consistent trading conditions, with the Rolex Old Bond Street boutique maintaining strong momentum and sharing best practices across the Group.
4. **Certified Pre-Owned Business**Encouraging performance in both US and UK markets.
5. **Investments**Focus on marketing, client experience, showroom development, and ecommerce infrastructure, with US ecommerce showing good growth.
6. **Updated FY26 Guidance**Sales growth in constant currency revised upward to 9%–11% (from 6%–10%), and EBIT margin adjusted to -70 bps to -90 bps (from flat to -100 bps). Capital expenditure remains unchanged at £65–£70 million.
7. **Outlook**Confidence in further cementing market position, supported by a differentiated model, strong brand partnerships, and disciplined execution.
CEO Brian Duffy emphasized the Group’s resilience in a volatile operating environment and highlighted the strategic benefits of recent acquisitions and investments. A conference call for analysts and investors was scheduled for the same day.
| Metric | FY26 Updated Guidance | FY26 Previous Guidance | Change |
|---|---|---|---|
| Sales Growth (Constant Currency) | 9% to 11% | 6% to 10% | Increased by 3% at the lower end |
| EBIT Margin (%) | -70 bps to -90 bps | Flat to -100 bps | Improved by 10 bps at the lower end |
| Capital Expenditure (£ million) | £65 to £70 | £65 to £70 | No Change |