Watches of Switzerland Group PLC

WOSG

Equity

ISIN GB00BJDQQ870 / Valor 47860815

LSE London Stock Exchange, SETS (2024-09-17)

GBP 4.03+3.12%

Watches of Switzerland Group PLC
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About company

Watches of Switzerland Group PLC, founded in 1924, is a leading retailer of luxury watches with showrooms in key retail locations across the UK, including London, Manchester, Glasgow, Birmingham, Brighton, and Cardiff, as well as presence in major airports. The company's multi-channel approach includes multi-brand showrooms, online platform, travel retail, and mono-brand boutiques in partnership with renowned watch brands such as Rolex, Audemars Piguet, OMEGA, and TAG Heuer. With a well-invested portfolio of showrooms in the UK, US, and Europe, Watches of Switzerland Group PLC has established a strong market position in the luxury watch industry, offering a wide range of high-end watches and fine jewelry to its discerning clientele.

Summarized from source with an LLMView SourceSector: Consumer Cyclicals

Revenue Performance

Watches of Switzerland Group PLC reported a group revenue of £1,538 million for the 52 weeks ended April 28, 2024, reflecting a 2% increase at constant currency and flat at reported rates compared to the prior year. The luxury watches segment, which represents 87% of the group revenue, saw a 3% increase in constant currency, driven by strong performance in the US market.

US Market Growth

The US market continued to show strong momentum for Watches of Switzerland Group PLC, with revenue reaching £692 million, an 11% increase at constant currency and a 6% increase at reported rates compared to the previous year. This growth was supported by the success of their business model and robust client demand, alongside significant showroom development projects.

UK and Europe Performance

In the UK and Europe, Watches of Switzerland Group PLC experienced a 5% decline in revenue, totaling £846 million. This decrease was attributed to macroeconomic conditions in the UK, including reduced consumer confidence and minimal return of tourist spending due to the lack of VAT-free shopping. Despite these challenges, the company continued to invest in showroom expansions and refurbishments.

Profit and Earnings

Watches of Switzerland Group PLC reported a statutory profit before tax of £92 million for the 52 weeks ended April 28, 2024, a 40% decrease from the previous year. The adjusted EBIT margin also saw a decline, dropping by 190 basis points to 8.8%. The statutory basic earnings per share (EPS) fell by 51% to 25.0 pence.

FY25 Outlook

Looking ahead to FY25, Watches of Switzerland Group PLC is cautiously optimistic, with revenue guidance set between £1.67 billion and £1.73 billion, reflecting a 9% to 12% growth at constant currency. The company plans to continue its strategic investments in showroom projects and expects to see further roll-out of the Rolex Certified Pre-Owned program, which has been performing ahead of expectations.

Summarized from source with an LLMView Source

Key figures

-32.7%1Y

-60.1%3Y

41.3%5Y

Performance

66.7%1Y

56.1%3Y

54.8%5Y

Volatility