Watches of Switzerland Group (LON: WOSG) shares continued their upward trajectory, reaching levels not seen since July 2023. The stock climbed to 779p, representing a 138% gain from its 2025 trough, as investors reacted to a strong earnings report and mounting speculation that the company could be acquired.
Takeover Rumors Fuel Investor Optimism
According to a Reuters report, Watches of Switzerland has been in discussions with potential acquirers, with an offer price of around 750p per share under consideration. However, given that the current market price exceeds that level, any successful bid would likely require a premium to secure shareholder approval. The buyout chatter comes amid a wave of M&A activity targeting British companies. Notable recent deals include Nuveen's $13.5 billion acquisition of Schroders, Apollo Management and Castlelake's bid for easyJet, and DoorDash's £2.9 billion purchase of Deliveroo. This trend underscores the attractiveness of UK-listed firms to international buyers.
US Business Drives Earnings Growth
Watches of Switzerland's latest financial results highlight the pivotal role of its US operations. Revenue rose 13% year-over-year to £1.82 billion, with the majority of growth occurring in the second half of the fiscal year. Crucially, the US segment now accounts for over 50% of total revenue, a milestone achieved partly through the acquisition of Deutsch & Deutsch. Adjusted EBIT increased 6% to £155 million, while statutory profit before tax surged 76% to £133 million. E-commerce revenue also showed strength, climbing 21% year-over-year.
CEO 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 market share gains. In the UK, the trading backdrop is showing encouraging signs of improvement."
Technical Indicators Point to Further Upside
From a technical perspective, the weekly chart reveals a double-bottom pattern formed at 317p—the lows of 2024 and 2025. The stock has broken above the neckline at 603p and is now trading above both the 50-week and 25-week exponential moving averages. It is also attempting to surpass the Ultimate Resistance level on the Murrey Math Lines tool. If the rally continues, the next target could be the extreme overshoot level of 875p.
The combination of strong fundamental performance and the potential for a premium-priced buyout suggests that Watches of Switzerland shares may have further room to run. However, investors should note that the current market price already exceeds the rumored offer level, implying that any deal would need to be sweetened.
For broader market context, see our coverage of Micron's HBM Sellout Fails to Lift Intel and AMD: Three Key Reasons and CEX Token Listings Plunge to 351 in Q2 2026, Lowest Since 2023.
This article is for informational purposes only and does not constitute financial advice.
