The registered shares of Swatch rose by 3 percent to 36.30 francs on Tuesday, reaching their highest level since the end of September. Richemont shares also increased, gaining 2.2 percent to 174.30 francs.
The watch titles benefited from an improved outlook published before the stock market opening on Tuesday by the British watch retailer Watches of Switzerland. Following a surprisingly strong first half of the year, Watches of Switzerland refined its fiscal 2027 forecast toward the upper end of its previously stated range. The company's stock rose by over 5 percent in early trading in London.
Specifically, Watches of Switzerland, which sells the highest volume of Rolex watches in Great Britain, now anticipates full-year revenue growth of 7 to 10 percent. The first half was characterized by unexpectedly strong sales figures in the United States, where constant-currency sales grew by 22 percent.
A Barclays analyst covering Watches of Switzerland stated that business development was better than anticipated. RBC Capital Markets also described the watch retailer's results as solid within a challenging macroeconomic environment, with an analyst noting strong operational execution. Momentum remains positive in both the United States and Great Britain, particularly ahead of the upcoming high-revenue year-end period.
This development provides a more favorable outlook for watch and jewelry retailers ahead of the crucial Christmas trading period, following weeks and months marked by negative industry headlines. Previous reports concerning business figures from LVMH, Kering, and Hermès had weighed on their respective share prices, alongside news that LVMH planned significant job cuts at Swiss watch manufacturer Zenith.
Additional insights into the watch and jewelry sector will follow on November 13, when Richemont releases its 2026/27 half-year financial results.
