Gatemore Capital Management has called on Watches of Switzerland to shift its primary stock listing to the United States, aiming to unlock the company’s full potential in its rapidly expanding US market. The Leicester-based luxury retailer, which specialises in high-end watches and jewellery, was presented by Gatemore at this year’s 13D Monitor Active-Passive Investor Summit, where the investment firm laid out its bold strategy for the company’s future growth.
Watches of Switzerland, a global leader in luxury timepieces with over 220 showrooms, has established itself as a dominant player in the UK and is now focusing heavily on expanding its presence in the US, a market it views as vastly under-penetrated. Gatemore, a major shareholder, believes that transitioning the company’s primary stock listing to the US would generate significant long-term benefits, including greater access to capital, higher valuations, and increased liquidity.
In a letter sent to the Watches of Switzerland board in September 2024, Gatemore emphasised the disparity between the company’s intrinsic value and its current share price, which was trading at 380p. The letter also advocated for a share buyback programme to provide immediate value to shareholders. However, the investment firm now believes that a more strategic move—a listing in the US—would better align the company’s growth ambitions with investor expectations.
Liad Meidar, Managing Partner at Gatemore, stated: “Watches of Switzerland is an exceptional business with a leading position in the UK luxury watch market and a growing presence in the US. The US is set to be a key revenue driver for the company in the years ahead, and moving the primary listing there would better reflect the company’s intrinsic value, provide deeper capital pools, and attract long-term growth investors.”
Meidar also highlighted that the proposed move would help Watches of Switzerland distance itself from the luxury slowdown seen in Asian markets, offering greater stability in the booming US luxury sector. Gatemore’s push reflects confidence in the company’s management team, which has an ambitious goal to double the business by 2028.
As Watches of Switzerland continues to expand its foothold in the American market, Gatemore’s proposal could be a game-changer, paving the way for the retailer to maximise its growth potential and achieve higher returns for investors.