I was finally able to make sdb work with my Gear S when I plug it to my computer via USB cable. Solution was to install the Samsung Smart Switch app

Now I’m trying to connect to the watch over WiFi. I turned off Bluetooth and connected watch to WiFi. Noted IP and follow the gudeline from here: http://developer.samsung.com/technical-doc/view.do?v=T000000251L

When I execute the connect command all I see is: 

error: failed to connect to remote target

Any suggestions?