Retail / news
Watches of Switzerland abandons £3bn sales target amid luxury downturn
Watches of Switzerland Group Plc is dropping its long-term goal to more than double sales to £3 billion by 2028, as the luxury market deteriorates. The company will present revised guidance to investors next month.
The British luxury watch retailer, best known as the top seller of Rolex timepieces in the UK, had set the ambitious target in its Long Range Plan announced in November 2023. However, sources familiar with the matter said the £3 billion ($4 billion) sales goal is no longer achievable within the original timeframe due to a worsening luxury market.
Management, led by chief executive officer Brian Duffy, plans to explain the shift to investors next month. While the growth drivers outlined in the original plan remain unchanged, the company intends to provide fewer specific forecasts with strict deadlines going forward. Watches of Switzerland will continue to issue annual guidance.
The reversal reflects broader challenges across the luxury industry. Major watch and jewellery brands have been hit by record gold prices inflating input costs, currency volatility, escalating US tariffs under President Donald Trump, and economic disruptions from conflicts in the Middle East and Ukraine.
Swiss watch exports have declined from their 2022 peaks and have yet to stage a meaningful recovery. Total exports fell 1.7% to 25.6 billion Swiss francs ($31.6 billion) in 2025, marking the second consecutive year of decline.
Despite the sector-wide slowdown, Watches of Switzerland has fared better than many of its peers, weathering the luxury downturn more effectively than most competitors.