Watches of Switzerland’s latest US move: acquiring Deutsch & Deutsch in Texas
Watches of Switzerland Group has snapped up Deutsch & Deutsch, a long-established luxury watch and jewellery retailer in Texas. The deal adds four showrooms – El Paso, Laredo, McAllen and Victoria – and lifts the Group to 25 Rolex-anchored showrooms in the US.
For retail investors, this is a clear statement of intent: the US remains front and centre, and Rolex-led locations continue to be the backbone of the strategy.
What exactly was announced
The Group has completed the acquisition of 88% of Deutsch & Deutsch, with an option to buy the remaining share capital. Deutsch & Deutsch will keep trading under its own name – a nod to its local brand strength as it nears 100 years in business – and the family leadership continues, with Tad and Aladar Deutsch staying on to lead the showrooms.
Two of the four locations have already undergone major expansion and refurbishment, with upgrades planned for the remaining sites.
Who is Deutsch & Deutsch, and why Texas matters here
Founded in the 1920s, Deutsch & Deutsch is an authorised distributor (that’s brand-approved to sell) for some of the world’s biggest luxury names: Rolex, Roberto Coin, Cartier, OMEGA, TUDOR, TAG Heuer, Breitling and IWC Schaffhausen. That’s a strong line-up by any standard.
The four showrooms are in South and West Texas, complementing Watches of Switzerland’s existing presence in the state. Keeping the Deutsch & Deutsch banner helps preserve local goodwill while plugging into the Group’s scale and brand partnerships.
Strategic fit: Rolex-anchored growth and brand firepower
Post-deal, the Group operates 25 Rolex-anchored showrooms in the US. “Rolex-anchored” is industry shorthand for locations where Rolex is a core draw and typically a major share of traffic and sales. In luxury watch retail, that anchor status matters for footfall and credibility with other brands.
There is also potential to broaden the product mix. Watches of Switzerland says it sees an opportunity to “further enhance the product line-up” by introducing additional access to the wide range of luxury watch and jewellery brands it already sells. Given the Group’s portfolio – and its US distribution rights for Roberto Coin since May 2024 – that’s a sensible lever.
Financial takeaways: $67 million revenue, profitability in line
For the financial year ended 31 December 2024, the four Deutsch & Deutsch showrooms generated $67 million of revenue. Profitability was “in line with the Group’s existing US retail business”. That’s helpful context: investors can think of these stores as broadly matching the current US profile rather than being a turnaround.
The Group expects “attractive financial returns” from the transaction, consistent with prior acquisitions. The purchase price, margin specifics and return metrics were not disclosed.
Deal structure: 88% now, option to buy the rest
Watches of Switzerland has bought 88% of the business with an option over the remaining shares. That structure keeps the founding family invested and aligned during integration, while giving the Group eventual path to full ownership if it chooses to exercise the option. Timing and terms for the option are not disclosed.
Integration signals: continuity plus upgrades
Operationally, this looks like a “keep what’s working” integration. The brand name stays. The local leaders stay. Two showrooms have already had significant expansion and refurbishment, and similar upgrades are planned for the other two – all described as to “the highest standards of modern luxury”. That should support sales density and brand consistency across the estate.
Why this matters for shareholders
- Strengthens US presence where the Group already operates, adding four sites with strong brand authorisations.
- Increases the Rolex-anchored footprint in the US to 25 showrooms, a clear strategic marker for the Group.
- Revenue base expands by $67 million (FY to 31 December 2024), with profitability in line with existing US operations.
- Upside from product-line expansion and planned refurbishments could lift productivity over time.
Balanced view: details that investors often want – purchase price, margins by store, return hurdles and timing – are not disclosed. We also don’t have a timeline for exercising the option on the remaining stake. Still, the direction of travel is consistent: targeted, brand-aligned acquisitions in the US with leadership continuity and capex already underway at half the estate.
Key numbers at a glance
| Showrooms acquired | 4 (El Paso, Laredo, McAllen, Victoria) |
| FY revenue (year ended 31 December 2024) | $67 million |
| Profitability | In line with the Group’s existing US retail business |
| US Rolex-anchored showrooms post-deal | 25 |
| Ownership acquired | 88% (option over remaining share capital) |
| Refurbishment status | 2 of 4 locations recently expanded/refurbished; upgrades planned for the rest |
| Authorised brands at Deutsch & Deutsch | Rolex, Roberto Coin, Cartier, OMEGA, TUDOR, TAG Heuer, Breitling, IWC Schaffhausen |
| Group footprint (as at 22 January 2026) | 200 showrooms, incl. 83 mono-brand boutiques |
CEO’s take
Brian Duffy calls the acquisition “value-accretive” and an “excellent complement” to the US network. The emphasis is on combining Deutsch & Deutsch’s local expertise with the Group’s strengths to grow presence in the US luxury watch and jewellery market.
Bigger picture: the Group’s brand platform
The Group remains the UK’s largest luxury watch retailer and operates across the UK and US through Watches of Switzerland, Mappin & Webb, Goldsmiths, Mayors, Betteridge, Deutsch & Deutsch, Analog:Shift and Hodinkee. It also has exclusive distribution rights for Roberto Coin in the US, Canada, Central America and the Caribbean.
As at 22 January 2026, the estate totals 200 showrooms with 83 dedicated mono-brand boutiques (single-brand stores) in partnership with heavyweights like Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand Seiko, Roberto Coin, BVLGARI and FOPE, plus a leading Heathrow presence and seven retail websites.
What to watch next
The Q3 FY26 Trading Update lands on 4 February 2026, with a webcast for analysts and investors at 9.00am UK time. Expect management to add colour on trading and, potentially, early integration progress.
My take
This is a tidy, on-brand acquisition: strong authorisations, existing refurb momentum, continuity of local leadership and immediate scale in a state the Group already knows. With $67 million of revenue and “in line” profitability, it should slot neatly into the US portfolio. The lack of deal metrics means we can’t judge the return profile precisely, but the strategic logic is straightforward and consistent with the Group’s playbook.
Net-net: positive. Execution and the pace of product-line enhancements will be the tell from here.
