According to a report from Reuters, private equity firms and strategic buyers have explored a potential acquisition of the company, although no formal offer has been made. CEO Brian Duffy declined to answer questions on the report during a financial analysts’ call.
Watches of Switzerland operates more than 190 stores worldwide and is a major retailer of brands such as Rolex, Omega, Cartier, TAG Heuer, and Breitling. The company recently reported an 11 per cent increase in sales across the past financial year, headlined by strong performance in the US market.
“Its stock still trades at less than half the record highs reached in 2022 when investors viewed Watches of Switzerland Group as a proxy bet on the privately-held Rolex during a period of unprecedented demand, multi-year waiting lists and eye-watering prices on the secondary market,” writes Rob Corder of WatchPro.
“Those concerns have since eased as Watches of Switzerland has continued to invest heavily in Rolex boutiques and expand its US business.”
Watches of Switzerland was established in 1924 and is the largest luxury watch retailer in the UK. Duffy reportedly engaged with the initial approaches because he believes the company’s stock market valuation does not accurately reflect its underlying strength.
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