It will in the sense that it has access to the GPS in your phone, which is really A-GPS or aGPS. That means the GPS data on your phone is really a combination of data from the ground and the sky. Pull out your phone and you'll see information pulled from WiFi and cell towers is used for GPS, which isn't exactly global, is it? Eventually it is once the relevant satcom data has had time to reach your phone (about half a minute). Odds are you get location data from terrestrial sources yet you call that GPS because there is a GPS radio in your phone, even if it isn't actually providing you with location data the way you think. In this way, the GPS of the watch is location data relative to the phone. Further, in the sense that a dot on a map is thought of as GPS, any wifi capable device is technically a poor person's GPS in that it yields a position based on proximity to a known point.
The watch could be treated as having GPS in the sense that it can provide location data. The accuracy of the data is essentially the range of 802.11 radios. With no GPS engine or radio, a smart watch on a wrist in Starbucks can tell you your location within say 10 meters. That isn't GPS and for the first minute of operation that is how the GPS in your phone works from a cold start.
The watch has no GPS specific components. It does have radios that communicate with terrestrial stations to produce location data. In some circumstances, that location data includes a NMEA feed. In many more cases, your phones GPS is really just an approximation based on the MAC of an Access Point and proximity to cell towers. Now your watch can provide location data because it has a comm path to a device with that information already. The data doesn't have to come from a constellation of satellites and that's the relevant point.
Apple Watch can provide location data with accuracy hinging upon the data sources in range of the radio it has. If your phone is nearby and has NMEA data that is current, your watch presents NMEA feed data from the GPS. Otherwise, it is just telling you what's in range of you. That's usually enough to be considered location data.