Watches of Switzerland shares rise to 779p on earnings, talks

Watches of Switzerland shares advanced to 779p, the highest level since July 2023, after the company published full-year results and there were reports it was in discussions with potential buyers. The stock is about 138% above its lowest point so far in 2025.

The group reported revenue for the year of £1.82 billion, up 13% with the bulk of growth in the second half. The business said its US operations now account for more than half of group revenue, reflecting the contribution from the acquisition of Deutsch & Deutsch. Adjusted EBIT increased 6% to £155 million and statutory profit before tax rose 76% to £133 million. Online sales grew 21% year on year.

Chief executive Brian Duffy commented: “We see a substantial runway for long-term growth, in both revenue and profit. The US represents a major opportunity, with considerable potential for further growth and market share gains. In our home market, the UK, the trading backdrop is showing encouraging signs of improvement.”

Market reports of takeover discussions cited a possible offer level around 750p per share. That indicated any successful bid would likely need to be at a higher premium than the reported level to secure shareholder support. Recent transactions involving UK-listed companies include a $13.5 billion takeover of Schroders, a bid for easyJet led by private equity firms, and a £2.9 billion acquisition of Deliveroo.

Technical analysts noted the stock formed a double-bottom near 317p and has traded above the pattern’s neckline at roughly 603p. The share price has been above both the 25-week and 50-week exponential moving averages and is approaching a key resistance level identified by Murrey Math analysis. Some chart analysts set an upside target near an extreme overshoot level of 875p if momentum continues.

The company reported stronger consumer demand in the United States, an improving trading environment in the UK and faster e-commerce growth in the year. Investors reacted to the combination of the annual results and the reported takeover discussions with increased buying interest, lifting the share price to multi-month highs.