Watches of Switzerland Group (LON:WOSG) Posts Quarterly Earnings Results

Key Points

• Watches of Switzerland Group reported a record FY 2026, with sales rising 13% in constant currency to GBP 1.828 billion, helped by broad-based growth and a stronger second half.
• The U.S. was the standout growth driver, becoming the company’s largest market and posting 24% constant-currency growth, supported by showroom investment, e-commerce, pre-owned sales, and the Deutsch & Deutsch acquisition.
• Profitability was under pressure as product mix, U.S. tariffs, and higher gold prices weighed on margins, though the company still generated GBP 162 million in free cash flow and guided for FY 2027 revenue growth of 5% to 10%.

Watches of Switzerland Group (LON:WOSG - Get Free Report) issued its earnings results on Tuesday. The company reported GBX 45.20 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Watches of Switzerland Group had a net margin of 4.05% and a return on equity of 12.32%.

Here are the key takeaways from Watches of Switzerland Group's conference call:

• FY 2026 was a record year, with sales up 13% in constant currency to GBP 1.828 billion, driven by broad-based growth and a strong acceleration in the second half.
• The U.S. became the group’s largest market and delivered 24% constant-currency growth, with momentum supported by showroom investments, e-commerce, pre-owned, and the Deutsch & Deutsch acquisition.
• Margins were pressured by product mix, U.S. tariffs, and higher gold prices, leading to a 60 bps decline in adjusted EBIT margin to 8.5%, partly offset by cost leverage.
• Pre-owned, Roberto Coin, and ecommerce all performed strongly, with pre-owned up 22%, Roberto Coin wholesale up 22%, and ecommerce up 21% in constant currency.
• The company ended the year with a healthy balance sheet and strong cash generation, including GBP 162 million of free cash flow, net debt of about GBP 57 million, and 18% ROCE, while guiding FY 2027 for 5% to 10% revenue growth and 40 to 80 bps EBIT margin expansion.

Watches of Switzerland Group Stock Performance

Shares of WOSG stock opened at GBX 753.50 on Tuesday. The company has a 50 day moving average price of GBX 682.58 and a 200-day moving average price of GBX 556.24. Watches of Switzerland Group has a 52 week low of GBX 316.20 and a 52 week high of GBX 778.50. The firm has a market capitalization of £1.74 billion, a PE ratio of 25.46, a P/E/G ratio of 1.56 and a beta of 1.87. The company has a quick ratio of 0.48, a current ratio of 1.96 and a debt-to-equity ratio of 107.40.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on WOSG shares. Jefferies Financial Group restated a "buy" rating and issued a GBX 440 price objective on shares of Watches of Switzerland Group in a report on Friday, May 15th. Royal Bank Of Canada increased their target price on Watches of Switzerland Group from GBX 560 to GBX 650 and gave the company a "sector perform" rating in a research note on Tuesday, May 19th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Watches of Switzerland Group presently has a consensus rating of "Moderate Buy" and a consensus target price of GBX 546.67.

Watches of Switzerland Group Company Profile

Established in 2007 the Watches of Switzerland Group is the UK's largest luxury watch retailer, operating in the UK and US comprising eight prestigious brands; Watches of Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US), Betteridge (US), Deutsch & Deutsch (US), Analog:Shift (US) and Hodinkee (US), with a complementary jewellery offering. Since 8 May 2024, the Group has also owned the exclusive distribution rights for Roberto Coin in the USA, Canada, Central America and the Caribbean.

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