Watches of Switzerland Raises Outlook on Resilient Luxury Demand

The U.K.-based retailer reported that performance during the fiscal third quarter ending Jan. 25 surpassed internal expectations. Despite a challenging macroeconomic landscape, the group noted that demand for its core luxury portfolio—which includes Hublot and TAG Heuer—continues to outstrip available supply. This persistent imbalance has provided a buffer against the "unusually volatile operating environment" cited by Chief Executive Brian Duffy, who specifically highlighted the impact of shifting tariffs and global uncertainty.

Revised Growth Targets

Management now projects organic revenue growth between 9% and 11% for the full fiscal year, a notable increase from the previous guidance of 6% to 10%. The company also moderated its expectations for margin compression, now forecasting a decline of 70 to 90 basis points compared to the 9.1% margin recorded in fiscal 2025. This revision suggests better-than-anticipated cost management and price resilience across its primary markets.

A significant driver of the group’s momentum is its aggressive expansion in North America. The recent acquisition of Deutsch & Deutsch, a U.S.-based jeweler, has already begun contributing to the bottom line. According to the company, the integration is progressing as planned, further cementing the retailer's foothold in the world’s largest luxury market.