LONDON – Watches of Switzerland Group raised its sales and profit targets for the full fiscal year following a robust quarter of holiday trading, especially in the U.S., and a more positive outlook for the sector.

The luxury watches and jewelry retailer, which operates stores for brands including Rolex and owns chains such as Mappin & Webb and Betteridge, reported that trading throughout the fiscal third quarter ended Jan. 25 was strong across the group.

Sales were consistent with trends in the first half, while growth was ahead of expectations. It said demand for “key luxury brands” remains strong and continues to outstrip supply in both the U.K. and U.S.

As a result, the group is now expecting sales growth in constant currency to land between 9 percent and 11 percent, compared with the previous projection of 6 percent to 10 percent.

The EBIT, or earnings before interest and taxes, margin is also set to improve in the second half compared with the first. WoS said the updated guidance reflects a series of strategic investments that will support growth and profitability in future years.

Brian Duffy, chief executive officer, said the third-quarter results were achieved “despite an unusually volatile operating environment, including macroeconomic uncertainty and tariffs, and is testament to the collective contribution of our colleagues.

“Looking ahead, we remain focused on further cementing our market position across both the U.S. and U.K., underpinned by our differentiated model, longstanding brand partnerships and disciplined execution,” he added.

During the quarter, the U.S. delivered “sustained broad-based growth across categories, brands and price points, reflecting the strength of client demand and the effectiveness of the group’s operating model,” the company said.

It added the Roberto Coin marketing campaign, “alongside a continued focus on ranging and merchandising, is driving excellent sales performance in the North American market.”

In January, WoS made further inroads in the U.S. with the acquisition of Deutsch & Deutsch, comprising four Rolex-anchored showrooms in Texas. WoS said the acquisition strengthens the group’s presence in a key U.S. market and is “highly complementary” to its existing portfolio.

In the U.K., trading conditions across luxury watches and jewelry were “consistent with recent periods,” with the Rolex Old Bond Street boutique showing “excellent momentum,” due to the client experience.

WoS said it has been sharing key insights from that showroom across the company “to support the continued elevation of its best-in-class luxury retail proposition.”

It added the certified pre-owned watch business in both the U.S. and the U.K. was doing well, while investments in e-commerce and new teams were bearing fruit. Capital expenditure will remain stable at 65-70 million pounds for 2026.

Jefferies believes the growth was entirely U.S.-driven, adding that strength in the region should “be far from a surprise” given recent Swatch and Richemont results.

As reported, Richemont’s specialist watch category has begun to perk up with fiscal third-quarter sales making an unexpected 7 percent leap to 872 million euros at constant exchange. It was the second consecutive positive quarter for watches, with growth across all regions, powered by double-digit performances in the Americas and Middle East and Africa.

Analysts had been expecting growth in the division to be flat. Stripping out China, Barclays said that growth in Richemont’s specialist watchmaking division was even stronger, while in the Americas it was likely up in the double digits.

Despite reporting a double-digit decline in net income in 2025, Swatch beat revenue expectations for the full year. Revenue was 6.28 billion Swiss francs, or $8.17 billion, down 5.9 percent against 2024’s figures at current exchange rates. It exceeded consensus projections of 6.15 billion Swiss francs, or $8 billion.

In December, Swiss watch exports saw a return to growth with a 3 percent increase to 2.1 billion Swiss francs, or $2.37 billion, driven by the U.S. and France. Leaping to second place in the monthly tally, shipments to the country saw a 50.8 percent uptick, according to the Federation of the Swiss Watch Industry.

As reported last month, China and the U.S. are set to be the twin engines behind a recovery in luxury watch sales this year, while Gen Z history buffs will help drive the secondary market with their passion for heritage styles, colored dials and brand icons.