CaratHalf the company is America now: Watches of Switzerland's year
Fiscal 2026 revenue rose 11 percent to $2.44 billion, with US sales up 18 percent to $1.24 billion — for the first time more than half of group revenue and profit. Guidance calls for 5 to 10 percent growth. The takeover suitors were reading these numbers.
Twenty-four hours after Reuters revealed that Watches of Switzerland had entertained takeover approaches, the company published the numbers that explain both the suitors' interest and the board's refusal. Group revenue for the fiscal year ended May 3 rose 11 percent to £1.83 billion, or $2.44 billion. Luxury watch sales grew 10 percent to £1.5 billion; luxury jewelry outpaced them at 14 percent, reaching £240 million. Management guided to another 5 to 10 percent of growth at constant currency for fiscal 2027.
The headline inside the headline is geographic. United States revenue climbed 18 percent to £927 million — $1.24 billion — and now accounts for more than half of group revenue and profit for the first time. Chief executive Brian Duffy called the milestone what it is: "The US continues to be the primary engine of growth." The UK and Europe, the group's historic base, grew a respectable 4 percent to £901 million. A British retailer whose name contains Switzerland is now, operationally, an American company with a London listing.
The mix matches the tape. Swiss federation data has the United States as the industry's indispensable market — exports there rose 12 percent in May while mainland China fell 21 — and WoS built its US position early, buying regional jewelers and rolling out Rolex and Audemars Piguet boutiques ahead of the field. The jewelry line growing faster than watches is the quieter tell: the group is diversifying its ticket mix inside the same doors, exactly the hedge a Rolex-dependent business should want.
Which returns the conversation to the approaches. The stock has rallied 55 percent this year to roughly £7.50, valuing the group near £1.75 billion — still half its January 2022 peak. Private capital looked at a structurally advantaged distributor trading at a sentiment discount and tried to buy the re-rating; the board looked at these results and declined to sell it. Fiscal 2026 is Duffy's evidence that the recovery is compounding inside the public company, no buyout required.
The desk's view: the results de-risk the board's refusal. A business growing 11 percent with its biggest market growing 18 does not need a rescue premium; it needs patience and a Rolex allocation. The strategic question is now the seller's, not the buyer's — every quarter like this one raises the price of the company that was almost in play, and the suitors know it.