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

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

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 Trading Up 0.5%

Shares of Watches of Switzerland Group stock opened at GBX 753.50 on Tuesday. Watches of Switzerland Group has a 1-year low of GBX 316.20 and a 1-year high of GBX 778.50. The company’s fifty day simple moving average is GBX 682.58 and its 200-day simple moving average is GBX 556.24. The company has a debt-to-equity ratio of 107.40, a current ratio of 1.96 and a quick ratio of 0.48. The stock 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.

Analysts Set New Price Targets

Several research analysts have issued reports on WOSG shares. Jefferies Financial Group reissued a “buy” rating and issued a GBX 440 target price on shares of Watches of Switzerland Group in a research report on Friday, May 15th. Royal Bank Of Canada upped their price target on shares of Watches of Switzerland Group from GBX 560 to GBX 650 and gave the company a “sector perform” rating in a research report on Tuesday, May 19th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat, Watches of Switzerland Group presently has a consensus rating of “Moderate Buy” and an average 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.