Top 2 reasons why Watches of Switzerland share price is soaring

Watches of Switzerland share price continued rising today, reaching its highest level since July 2023, helped by its strong earnings report and the rising hopes that it will be acquired. WOSG jumped to 777p, up by 138% from its lowest level in 2025.

WOSG stock has rallied strongly in recent months, driven by the company's robust business performance, particularly in the United States, where demand for its products continues to surge. This surge has been correlated with the ongoing stock market boom, where the Dow Jones and S&P 500 indices are nearing their all-time highs.

The stock also surged after Reuters reported that the company was in talks with potential suitors. The report indicated that WOSG was considering an offer of around 750p per share, which is below its current market price. As a result, any successful takeover bid would likely need to come in at a higher premium to win shareholder approval.

A potential buyout would come at a time when demand for British companies continue rising. For example, Nuveen, a company owned by TIAA, bought Schroders in a $13.5 billion deal. Apollo Management and Castlelake have made a bid for easyJet, while DoorDash bought Deliveroo in a 2.9 billion pound deal.

Earnings growth continues

Watches of Switzerland’s earnings report showed that its business continued doing well in the last financial year. Its revenue rose by 13% to £1.82 billion, with most of this growth happening in the second half of the year.

Most importantly, while WOSG is a British company, its US business has crossed 50% of its revenue. Its acquisition of Deutsch & Deutsch contributed to this growth.

At the same time, its adjusted EBIT rose by 6% to £155 million, while the statutory profit before tax soared by 76% to £133 million.

The company’s growth channels are improving, with its e-commerce revenue rising by 21% YoY. In a statement, the CEO said:

“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.”

WOSG stock chart | Source: TradingView

The weekly chart shows that the Watches of Switzerland stock price formed a double-bottom pattern at 317, its lowest level in 2024 and 2025. It has now moved above the neckline of this pattern at 603p.

The stock has remained above the 50-week and 25-week Exponential Moving Averages (EMA). It is attempting to move above the Ultimate Resistance of the Murrey Math Lines tool.

Therefore, the potential for acquisition and the growing sales suggests that the stock has more upside to go. If this happens, the next target to watch will be the extreme overshoot level of 875p.

READ MORE: Here’s why Watches of Switzerland is a cheap retail stock to buy