Watches of Switzerland Group PLC (WOSG) AI Stock Analysis

• Market Cap: £1.12B
• Dividend Yield: N/A
• Average Volume (3M): 707.21K
• Price to Earnings (P/E): 16.2
• Beta (1Y): 1.89
• Revenue Growth: 9.64%
• EPS Growth: 71.55%
• Country: UK
• Employees: 2,755
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.20
• Shares Outstanding: 233,301,620
• 10 Day Avg. Volume: 652,222
• 30 Day Avg. Volume: 707,207
• PEG Ratio: -0.27
• Price to Book (P/B): 1.53
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 7.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £516.43
• Price Target Upside: 5.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: 571.00p ▲(17.10% Upside)

Watches of Switzerland Group PLC's overall score is driven by strong financial performance and positive earnings call sentiment, particularly in the U.S. market. Technical indicators support a bullish outlook, although valuation concerns and leverage require attention.

Positive Factors

U.S. Market Growth

Strong growth in the U.S. market highlights the company's successful expansion and robust demand, enhancing its competitive position and revenue potential.

E-commerce Expansion

The significant growth in e-commerce, especially in the U.S., underscores the company's effective digital strategy, broadening its market reach and customer base.

Cash Flow Generation

Robust cash flow growth enhances the company's ability to fund operations, invest in growth opportunities, and maintain financial flexibility.

Negative Factors

Margin Pressure

Margin pressures from tariffs and adverse product mix could impact profitability, necessitating strategic adjustments to sustain margins.

UK Market Challenges

The challenging consumer environment and showroom closures in the U.K. may limit growth, requiring targeted strategies to revitalize this market.

Adjusted EBIT Margin Decline

A decline in EBIT margin indicates potential operational inefficiencies or cost pressures, which could affect long-term profitability if not addressed.

Watches of Switzerland Group PLC Business Overview & Revenue Model

Company Description

Watches of Switzerland Group PLC (WOSG) is a leading luxury watch retailer in the United Kingdom and Europe, specializing in the distribution of high-end timepieces from prestigious brands such as Rolex, Patek Philippe, and Omega. The company operates a multi-channel retail model, with a strong presence in both physical stores and online platforms, catering to a discerning clientele that values quality craftsmanship and luxury branding. WOSG also offers bespoke services, including watch repairs and servicing, enhancing the customer experience and fostering brand loyalty.

How the Company Makes Money

Watches of Switzerland Group PLC generates revenue primarily through the sale of luxury watches and jewelry. The company's revenue model is built on high-margin products, with significant markups on designer watches compared to their wholesale prices. Key revenue streams include direct sales from their retail stores, online sales through their e-commerce platform, and after-sales services such as maintenance and repairs. Additionally, strategic partnerships with luxury watch brands allow WOSG to secure exclusive distribution rights, enhancing its product offerings and attracting high-end clientele. The growing trend towards luxury goods and the increasing demand for premium watches also contribute positively to the company's financial performance.

Watches of Switzerland Group PLC Financial Statement Overview

Summary

Watches of Switzerland Group PLC exhibits solid financial health with consistent revenue growth and strong cash flow generation. However, there is a slight decline in profitability margins and an increase in leverage, which requires careful management.

Income Statement

Watches of Switzerland Group PLC has demonstrated consistent revenue growth with a 5.78% increase in the latest year, following a slight decline in the previous year. The gross profit margin has remained stable, though slightly lower than in earlier years. The net profit margin has decreased to 3.26% from 3.84%, indicating some pressure on profitability. However, the EBIT and EBITDA margins remain healthy, suggesting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.20, indicating a higher reliance on debt financing, which could pose a risk if not managed carefully. Return on equity has decreased to 9.97%, reflecting reduced profitability. The equity ratio remains stable, suggesting a balanced approach to asset financing.

Cash Flow

The company has shown a strong free cash flow growth rate of 20.33%, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, though slightly lower than previous years, suggesting efficient cash conversion. The free cash flow to net income ratio remains robust, supporting the company's ability to fund operations and growth.

Breakdown	TTM	Dec 2024	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.54B	1.65B	1.54B	1.24B	905.10M
Gross Profit	217.60M	189.40M	211.20M	226.40M	188.70M	123.30M
EBITDA	231.10M	220.10M	213.60M	264.60M	212.80M	117.20M
Net Income	69.30M	59.10M	53.80M	121.80M	101.00M	50.60M
Balance Sheet
Total Assets	1.50B	1.33B	1.48B	1.24B	1.03B	827.20M
Cash, Cash Equivalents and Short-Term Investments	44.30M	115.70M	79.70M	136.40M	105.90M	76.10M
Total Debt	628.40M	573.70M	647.40M	530.40M	459.20M	419.25M
Total Liabilities	918.90M	804.40M	936.00M	765.70M	668.70M	576.90M
Stockholders Equity	585.10M	523.00M	539.60M	469.30M	361.30M	250.30M
Cash Flow
Free Cash Flow	124.70M	107.30M	108.30M	136.90M	129.30M	147.70M
Operating Cash Flow	193.40M	191.30M	183.70M	211.90M	170.30M	171.80M
Investing Cash Flow	-78.30M	-121.10M	-178.00M	-95.50M	-88.10M	-23.60M
Financing Cash Flow	-161.80M	-91.70M	-21.10M	-85.20M	-55.70M	-143.40M

Watches of Switzerland Group PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 487.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WOSG, the sentiment is Positive. The current price of 487.6 is above the 20-day moving average (MA) of 486.03, above the 50-day MA of 440.87, and above the 200-day MA of 393.24, indicating a neutral trend. The MACD of 13.43 indicates Positive momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 8.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:WOSG.

Watches of Switzerland Group PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WOSG	79 Outperform	£1.12B	16.19	12.24%	―	9.64%	71.55%
NXT	76 Outperform	£15.81B	20.25	51.86%	1.80%	9.74%	0.92%
FRAS	73 Outperform	£2.92B	6.19	19.54%	―	-6.43%	52.93%
DOCS	64 Neutral	£733.94M	47.44	4.61%	3.36%	-2.59%	-46.13%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MKS	61 Neutral	£6.51B	328.57	0.68%	1.18%	14.13%	-96.12%
BRBY	55 Neutral	£4.58B	-167.31	-3.00%	―	-9.44%	-170.53%

Watches of Switzerland Group PLC Corporate Events

Watches of Switzerland Reports Robust H1 FY26 Performance

Watches of Switzerland Group PLC reported strong financial results for the first half of FY26, driven by robust growth in the US, which now accounts for almost 60% of the company’s profitability. Group revenue increased by 10% in constant currency, with a notable rise in adjusted EBIT and free cash flow. The company benefited from a reduction in US tariffs on Swiss imports and continued to expand its retail and ecommerce presence. The outlook for the second half of the year remains positive, with trading in line with expectations and a confident reiteration of FY26 guidance.

Watches of Switzerland Group to Host Live Investor Presentation

Watches of Switzerland Group PLC announced an upcoming live investor presentation on the Engage Investor platform, scheduled for December 4, 2025, following the release of its H1 FY26 results. This event invites individual shareholders and interested investors to participate and engage with the leadership team, highlighting the company’s commitment to transparency and investor relations. The announcement underscores the company’s proactive approach to maintaining strong communication with stakeholders and could enhance its market positioning by fostering investor confidence.

Watches of Switzerland Group Appoints New Joint Corporate Brokers

Watches of Switzerland Group PLC has appointed Merrill Lynch International and UBS AG London Branch as Joint Corporate Brokers, joining Barclays Bank PLC, effective immediately. This strategic move aims to strengthen the company’s financial advisory team, potentially enhancing its market positioning and operational efficiency in the luxury watch retail sector.

Leadership Change at Watches of Switzerland Group

Watches of Switzerland Group PLC announced a change in its board of directors as Robert Moorhead steps down with immediate effect. Tea Colaianni, the Senior Independent Director, will temporarily assume the role of Interim Chair of the Audit & Risk Committee until a permanent successor is appointed. This change is in compliance with UK Listing Rule 6.4.6(R). The board expressed gratitude for Moorhead’s contributions since 2019, and this leadership transition may impact the company’s governance and strategic direction.

Watches of Switzerland Reports Strong H1 FY26 Performance Driven by US Growth

Watches of Switzerland Group PLC reported a strong performance for the first half of FY26, with a 10% increase in group revenue at constant currency, driven by a 20% rise in US sales. The company’s growth is attributed to strategic investments in teams, showrooms, and digital offerings, alongside the successful integration of Roberto Coin. Despite challenges in the UK retail environment, the company achieved a 2% revenue increase, with its luxury watch market remaining stable. The Group is optimistic about continued sales growth and maintaining its leadership in luxury watch and jewellery retailing, despite economic uncertainties and US tariffs.

Watches of Switzerland Group to Release H1 Trading Update

Watches of Switzerland Group PLC has announced that it will release its H1 Trading Update for the 26 weeks ending on October 26, 2025, on November 6, 2025. This forthcoming update is anticipated to provide insights into the company’s performance and strategic positioning within the luxury watch retail market, potentially impacting stakeholders and market perceptions.