Watches of Switzerland shares rise on solid 4Q results

Published 15/05/2025, 08:50
Watches of Switzerland shares rise on solid 4Q results

Investing.com -- Shares of Watches of Switzerland (LSE:WOSG) climbed 4% following the company’s release of its fourth quarter and full-year 2025 trading statement.

The luxury timepiece retailer reported group revenues of £1.65 billion, marking an 8% organic increase and aligning with consensus estimates. The growth was driven by robust performance in the United States, with revenues soaring 16% organically to £786 million, while UK & Europe revenues saw a more modest 2% organic rise to £866 million.

The company’s adjusted EBIT for FY25 is expected to meet consensus projections. In the US, Watches of Switzerland noted a normalization of trading trends in April after a temporary period of consumer uncertainty. Meanwhile, the UK region showed positive and improving trends in the second half of the year, with the external environment stabilizing as anticipated by management.

Watches of Switzerland’s pre-owned Rolex business and the Roberto Coin brand have delivered encouraging performances. The retailer’s store network expansion included the successful opening of a new Rolex flagship boutique on Old Bond Street, which exceeded expectations, and new Rolex projects in Plano, Texas, Jacksonville, Florida, and the conversion of Mayors Lenox in Atlanta.

Ecommerce initiatives are also underway, with the launch of an upgraded Watches of Switzerland website in the US for the first quarter of 2026, and further site launches planned for Mayors and Betteridge during the year.

Despite not providing guidance for FY26, management remains cautious due to the uncertain macroeconomic backdrop. There will be no conference call, but the company will announce a full set of FY25 results on July 3, 2025.

RBC analysts commented on the company’s performance, stating, "Revenue trends in-line with expectations in 4Q/FY25 should provide some reassurance with no worse than feared US tariff impact and improving trends in the UK. From here, focus shifts to FY26E guidance."

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