Watches of Switzerland Group (LON:WOSG) Announces Earnings Results

Watches of Switzerland Group (LON:WOSG) posted its quarterly earnings results on Tuesday. The company reported GBX 45.20 earnings per share 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 Price Performance

Shares of LON WOSG opened at GBX 784 on Wednesday. The business’s 50 day moving average price is GBX 687.36 and its two-hundred day moving average price is GBX 558.12. The company has a market cap of £1.81 billion, a PE ratio of 26.49, a price-to-earnings-growth 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. Watches of Switzerland Group has a twelve month low of GBX 316.20 and a twelve month high of GBX 787.

Wall Street Analysts Forecast Growth

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