The £7.50 Question: Why Watches of Switzerland Is Fielding Takeover Offers and What It Means for American Watch Buyers

 

The £7.50 Question: Why Watches of Switzerland Is Fielding Takeover Offers and What It Means for American Watch Buyers

## The UK's largest luxury watch retailer has held talks about going private. Here's why the company that sells Rolex, Patek Philippe, and Cartier believes the stock market is undervaluing it—and why private equity is paying attention.

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### Introduction: A "£7.50" Wake-Up Call

In the past year, Watches of Switzerland Group has done what many luxury retailers could only dream of: it saw its stock price rally by 55% to about **£7.20** per share . In the U.S., its sales surged 24% to $1.24 billion, making America the company's largest market . It's outrunning luxury giants like LVMH and Hermès .

And yet, CEO Brian Duffy still believes the stock market is undervaluing the company .

That belief is why Watches of Switzerland—the UK's largest luxury watch retailer, with nearly 200 showrooms across the UK and US—has held talks in recent months about potential takeover offers . According to three sources close to the matter, private equity funds and strategic bidders have shown interest in the FTSE 250 company .

Watches of Switzerland, which is due to publish full-year results on Tuesday, declined to comment . But the numbers speak volumes. Despite the 55% rally, shares remain at less than half their 2022 peak . A third source said the company is seeking an offer of "significantly more than £7.50 per share" .

This is not just a story about corporate finance. It's a story about the transformation of the luxury watch market—and why the company that sells Rolex, Patek Philippe, and Cartier to American consumers may soon have a different owner.

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## The American Engine: Why the U.S. Is Now the Growth Story

If you're an American watch enthusiast, you've likely seen Watches of Switzerland's growing presence without realizing the scale of its expansion. The company now operates **25 Rolex-anchored showrooms** in the U.S., including recent acquisitions like **Deutsch & Deutsch**, a family-owned retailer in Texas that dates back to the 1920s .

### The Numbers That Matter

| Metric | Value |

|--------|-------|

| **Total Group Revenue (FY26)** | £1.83 billion (+13% constant currency)  |

| **U.S. Revenue** | £1.24 billion (+24% constant currency)  |

| **U.S. Share of Group Sales** | More than 50%  |

| **U.S. Showrooms** | 59 (producing double the revenue of UK stores)  |

| **Total Showrooms (UK + US)** | 199  |

The U.S. performance is the engine of the company's growth. CEO Brian Duffy described it as a "major milestone" achieved just eight years after entering the U.S. market . He called the U.S. "the best market to be in right now" .

The American consumer's appetite for luxury watches has remained robust, supported by the "high-income consumer" who has benefited from increases in wealth due to appreciation in financial assets . In other words: the stock market rally is fueling demand for Rolexes and Cartiers.

### The U.S. Profitability Advantage

The U.S. is not only the bigger market—it's by far the most profitable. According to Professional Jeweller, each U.S. store generates around double the sales revenue of UK counterparts, with an estimated EBIT of **£1.15 million per showroom** compared to roughly £550,000 in the UK .

This profitability advantage is why Watches of Switzerland has been aggressively expanding in the U.S. The company invested £67 million in expansionary capital projects in FY26, including new showrooms, relocations, and expansions across both the UK and US .

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## Why a Takeover? The "Undervalued" Story

So why is Watches of Switzerland considering going private? The answer lies in a disconnect between the company's performance and its stock price.

**The Upside:** Shares have rallied 55% to about £7.20 this year, driven by strong demand for high-end timepieces .

**The Downside:** The shares remain at less than half their 2022 peak, reflecting a European luxury sales slowdown in recent years .

**The Catalyst:** The stock sank in 2023 after Rolex—Watches of Switzerland's most important supplier—acquired Swiss-based retailer Bucherer . Some analysts saw that as a threat to Watches of Switzerland's relationship with Rolex, even though CEO Brian Duffy responded to the approaches because he believes the stock market undervalues the company .

**The Price:** A third source said Watches of Switzerland is seeking an offer "significantly more than £7.50 per share" .

A private sale of the business would continue a trend of UK companies leaving the London Stock Exchange after a flurry of foreign takeovers . As one source put it, the migration of UK companies from the LSE is accelerating.

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## The Human Element: What This Means for American Consumers

### For Watch Enthusiasts

If Watches of Switzerland goes private, what changes for American buyers? The short answer is: probably not much—at least not immediately. The company's U.S. operations are its crown jewel, and any buyer would be acquiring them precisely because of their growth and profitability.

However, a private equity owner could mean:

- **More aggressive expansion**: Private equity typically looks for growth, which could mean more U.S. showrooms.

- **Potential cost-cutting**: Private equity also looks for efficiency, which could mean changes to operations.

- **Less transparency**: As a private company, Watches of Switzerland would no longer need to publish quarterly earnings or disclose its financials publicly.

### For Employees

Watches of Switzerland employs more than **3,000 colleagues** across the UK and US . A takeover could bring changes to corporate culture, benefits, and job security. Private equity owners typically look for operational improvements, which can sometimes mean restructuring.

### For Investors

If you're an investor in Watches of Switzerland, a takeover could be a windfall. The company is seeking an offer "significantly more than £7.50 per share" , which would represent a premium over the current price.

However, it's worth noting the broader context: shares remain at less than half their 2022 peak . Even at £7.50, long-term investors who bought at the peak would still be underwater.

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## The Luxury Watch Market: Why It Matters

The interest in Watches of Switzerland is part of a broader story about the luxury watch market.

### The Post-Pandemic Slowdown

After an extraordinary post-pandemic surge, the luxury sector hit a wall at the end of 2023 . Chinese consumer demand—a key engine of growth—collapsed . Since then, watch and jewelry brands have faced:

- Record gold prices inflating input costs

- Currency volatility

- Escalating tariffs under President Trump

- Economic disruption from conflicts in the Middle East and Ukraine

Swiss watch exports have slid from their 2022 highs, shrinking 1.7% to 25.6 billion francs in 2025—the second consecutive year of decline .

### Watches of Switzerland's Resilience

Despite the headwinds, Watches of Switzerland has weathered the luxury sector's slowdown better than most . The stock is up more than 74% in the past 12 months, outpacing growth at much larger luxury peers like Richemont, LVMH, and Hermès .

The reasons for this resilience are clear:

1. **U.S. expansion**: The U.S. market remains the largest and fastest-growing luxury watch market globally .

2. **Certified pre-owned growth**: The pre-owned watch market has become stable after volatility in 2022 and 2023, and Rolex Certified Pre-Owned is now available in all U.S. doors .

3. **E-commerce investments**: The company is investing in its online presence, including re-platforming its U.S. ecommerce site to Shopify .

4. **Jewelry expansion**: The acquisition of Roberto Coin and growing jewelry sales are diversifying the business .

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## Frequently Asked Questions

### Q: What is Watches of Switzerland?

A: Watches of Switzerland Group is the UK's largest luxury watch retailer, operating nearly 200 showrooms across the UK and US under brands including Watches of Switzerland, Mappin & Webb, Goldsmiths, Mayors, Betteridge, Deutsch & Deutsch, and Hodinkee . It is a key partner of Rolex, Cartier, OMEGA, and other major luxury watch brands.

### Q: Why is Watches of Switzerland considering a takeover?

A: CEO Brian Duffy believes the stock market undervalues the company, despite a 55% rally in the past year . The company is seeking an offer of "significantly more than £7.50 per share" . Private equity funds and strategic bidders have shown interest .

### Q: How much is Watches of Switzerland worth?

A: The company has a market capitalization of approximately £1.66 billion . Sales in the fiscal year ending May 2026 reached £1.83 billion, with U.S. revenue growing 24% to $1.24 billion .

### Q: What's happening with the company's U.S. expansion?

A: The U.S. is now Watches of Switzerland's largest market, representing more than 50% of group sales . The company recently acquired Deutsch & Deutsch, adding four Rolex-anchored showrooms in Texas . It now operates 25 Rolex-anchored showrooms in the U.S. .

### Q: What would a takeover mean for Rolex's relationship with Watches of Switzerland?

A: This is a key question. The company's stock sank in 2023 after Rolex acquired Bucherer, raising concerns about the watchmaker's relationship with Watches of Switzerland . However, CEO Brian Duffy has responded to takeover approaches precisely because he believes in the company's value .

### Q: When will we know if a deal is happening?

A: The process is at an early stage, and no formal offer has been made . The company is due to publish full-year results on Tuesday, which could provide more clarity .

### Q: What is the "migration of UK companies from the London Stock Exchange"?

A: There has been a recent trend of UK companies being acquired by foreign buyers or going private, driven by relatively low valuations and a strong U.S. dollar . A private sale of Watches of Switzerland would continue this pattern.

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## Conclusion: The £7.50 Question

The story of Watches of Switzerland's potential takeover is a story about perceived value—and the gap between what a company is worth and what the market says it's worth.

For CEO Brian Duffy, the answer is clear: the company is undervalued. That's why he responded to initial approaches from private equity funds and strategic bidders . That's why the company is seeking an offer "significantly more than £7.50 per share" .

For American consumers, the story is about a luxury retailer that has successfully pivoted to the U.S. market. The U.S. now accounts for more than half of sales . U.S. stores generate double the revenue of UK stores . And the company's growth has outpaced its luxury peers .

Whether Watches of Switzerland remains public or goes private, one thing is clear: the American luxury watch market is its future. And that market is only getting bigger.

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## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or professional advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Takeover discussions, company valuations, and market conditions are subject to change. No formal offer has been made for Watches of Switzerland, and the company has not confirmed any transaction. You should consult with a qualified financial advisor before making any investment decisions.

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*Published: July 14, 2026*

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**Tags:** Watches of Switzerland, WOSG, luxury watches, Rolex, Cartier, takeover offer, private equity, Brian Duffy, London Stock Exchange, luxury retail, U.S. expansion, Deutsch & Deutsch, Roberto Coin, Hodinkee, Mayors, Mappin & Webb, Goldsmiths, luxury jewelry, FTSE 250, Rolex Certified Pre-Owned, Swiss watch exports