Watches of Switzerland Group PLC (GB:WOSG)
LSE:WOSG
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Watches of Switzerland Group PLC
(LSE:WOSG)
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Rating:79Outperform
Price Target:
725.00 p
▲(36.66% Upside)
Action:Reiterated
Date:05/15/26
The score is driven primarily by solid financial performance with strong free cash flow, reinforced by upbeat earnings-call guidance and U.S.-led growth. Technicals are supportive but look stretched (high RSI), while the low P/E adds valuation support despite noted margin pressures.
Positive Factors
U.S. Market Leadership
Sustained double-digit U.S. growth and showroom expansion create a durable earnings base. The U.S. is the group's primary profit engine, enabling scale, stronger brand partnerships and higher margin mix. Continued U.S. rollout and market share gains support multi‑year revenue and EBIT resilience.
Negative Factors
Margin Pressure from U.S. Tariffs
Tariff‑driven margin compression directly reduces net profitability and ROE unless offset by pricing or sourcing changes. With brand margins largely set by suppliers, persistent tariffs can structurally lower product margins and constrain the firm's ability to restore prior net margin levels over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
U.S. Market Leadership
Sustained double-digit U.S. growth and showroom expansion create a durable earnings base. The U.S. is the group's primary profit engine, enabling scale, stronger brand partnerships and higher margin mix. Continued U.S. rollout and market share gains support multi‑year revenue and EBIT resilience.
Read all positive factors
Watches of Switzerland Group PLC (WOSG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.60B
Dividend YieldN/A
Average Volume (3M)707.21K
Price to Earnings (P/E)5.1
Beta (1Y)1.49
Revenue Growth9.64%
EPS Growth71.55%
CountryUK
Employees2,755
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)0.30
Shares Outstanding233,301,620
10 Day Avg. Volume652,222
30 Day Avg. Volume707,207
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)1.53
Price to Sales (P/S)0.52
P/FCF Ratio7.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£587.50Price Target Upside10.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)0.49
Revenue Forecast (FY)£1.96B
Watches of Switzerland Group PLC Business Overview & Revenue Model
Company Description
Watches of Switzerland Group PLC operates as a retailer of luxury watches. The company offers luxury watches and jewelry; fashion and classic watches and jewelry; and gifts, as well as provides servicing, repairs, and insurance services for fashio...
How the Company Makes Money
WOSG makes money primarily by retailing luxury watches and, to a lesser extent, luxury jewelry, earning revenue from the margin between the wholesale cost it pays to brands/suppliers and the prices paid by end customers. Its key revenue streams ar...
Watches of Switzerland Group PLC Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 02, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong performance in the U.S. market and substantial growth in ecommerce and the Certified Pre-Owned program. However, challenges such as margin pressure from U.S. tariffs and a modest performance in the U.K. market were noted. Overall, the highlights significantly outweigh the lowlights, indicating a positive sentiment.Positive Updates
Strong U.S. Sales Growth
The U.S. market saw a 21% increase in retail sales in constant currency, driven by expansion of the showroom network and robust demand across brands and categories.
Negative Updates
Margin Pressure Due to U.S. Tariffs
Net product margin decreased by 90 basis points due to adverse product mix and a reduction in brand margins resulting from U.S. tariffs.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong U.S. Sales Growth
The U.S. market saw a 21% increase in retail sales in constant currency, driven by expansion of the showroom network and robust demand across brands and categories.
Read all positive updates
Company Guidance
In the recent call, the company provided a robust set of metrics and guidance for the fiscal year. Sales for the first half of the year reached GBP 845 million, marking a 10% increase in constant currency, driven by a 20% surge in the U.S. and a 5% rise in the U.K. after adjusting for store closures. EBIT increased by 6% to GBP 69 million, while free cash flow soared by 71% to GBP 48 million. The company completed a GBP 25 million share buyback and invested GBP 37 million in showroom projects, completing eight in the first half. E-commerce saw a 17% rise, with significant growth in the U.S. The group's leverage was at 0.6x, and ROCE improved by 80 basis points to 17.3%. They reiterated their full-year guidance of a 6% to 10% revenue growth at constant currency, with capital expenditure expected between GBP 65 million and GBP 70 million. The U.S. market was highlighted as a significant growth driver, contributing 59% of adjusted EBIT, with a continued focus on expansion, acquisitions, and client-centric initiatives.Watches of Switzerland Group PLC Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Apr 2024 | Apr 2022 | Apr 2021 | Apr 2020 | Apr 2019 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.71B | 1.65B | 1.54B | 1.24B | 905.10M | 810.51M |
| Gross Profit | 217.60M | 211.20M | 226.40M | 188.70M | 123.30M | 99.25M |
| EBITDA | 231.10M | 213.60M | 264.60M | 212.80M | 117.20M | 74.90M |
| Net Income | 69.30M | 53.80M | 121.80M | 101.00M | 50.60M | 507.00K |
Balance Sheet | ||||||
| Total Assets | 1.50B | 1.48B | 1.24B | 1.03B | 827.20M | 852.20M |
| Cash, Cash Equivalents and Short-Term Investments | 44.30M | 79.70M | 136.40M | 105.90M | 76.10M | 72.93M |
| Total Debt | 628.40M | 647.40M | 530.40M | 459.20M | 419.25M | 507.68M |
| Total Liabilities | 918.90M | 936.00M | 765.70M | 668.70M | 576.90M | 652.66M |
| Stockholders Equity | 585.10M | 539.60M | 469.30M | 361.30M | 250.30M | 199.54M |
Cash Flow | ||||||
| Free Cash Flow | 124.70M | 108.30M | 136.90M | 129.30M | 147.70M | 72.85M |
| Operating Cash Flow | 193.40M | 183.70M | 211.90M | 170.30M | 171.80M | 95.20M |
| Investing Cash Flow | -78.30M | -178.00M | -95.50M | -88.10M | -23.60M | -59.70M |
| Financing Cash Flow | -161.80M | -21.10M | -85.20M | -55.70M | -143.40M | 1.52M |
Watches of Switzerland Group PLC Technical Analysis
Positive
530.50
Price Trends
515.92
Positive
504.16
Positive
451.08
Positive
Market Momentum
46.35
Negative
77.67
Negative
94.77
Negative
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 530.5 is below the 20-day moving average (MA) of 571.90, above the 50-day MA of 515.92, and above the 200-day MA of 451.08, indicating a bullish trend. The MACD of 46.35 indicates Negative momentum. The RSI at 77.67 is Negative, neither overbought nor oversold. The STOCH value of 94.77 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £1.60B | 5.13 | 12.32% | ― | 9.64% | 71.55% | |
73 Outperform | £3.12B | 2.38 | 21.64% | ― | -6.43% | 52.93% | |
68 Neutral | £3.74B | 9.49 | 15.14% | 1.21% | 10.51% | -9.26% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | £666.12M | 4.46 | 4.40% | 3.36% | -2.88% | 431.91% | |
53 Neutral | £4.03B | 185.63 | 2.29% | ― | -1.67% | ― | |
52 Neutral | £78.93M | -2.45 | 370.62% | ― | -15.13% | 48.56% |
* Consumer Cyclical Sector Average
GB:WOSG
Watches of Switzerland Group PLC
684.00
292.60
74.76%
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GB:FRAS
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GB:JD
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GB:DOCS
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Watches of Switzerland Group PLC Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Watches of Switzerland Hits Record Revenue as US Becomes Majority Market
Positive
May 14, 2026
Watches of Switzerland Group PLC reported record revenue of £1.83 billion for FY26, up 13% in constant currency, driven mainly by strong US growth, where sales rose 24% and now contribute more than half of group revenue. Luxury watches and je...
Executive/Board ChangesRegulatory Filings and Compliance
Watches of Switzerland CFO Exercises Deferred Bonus Share Award
Neutral
Mar 2, 2026
Watches of Switzerland Group PLC reported a transaction involving Chief Financial Officer Anders Romberg, who exercised 12,853 deferred bonus shares under the company’s Long Term Incentive Plan. The shares, ordinary stock with ISIN GB00BJDQQ...
Regulatory Filings and Compliance
Watches of Switzerland Director Chabi Nouri Buys Shares in the Group
Positive
Feb 27, 2026
Watches of Switzerland Group PLC has disclosed a share transaction involving non-executive director and PDMR Chabi Nouri, in line with UK Market Abuse Regulation requirements. Nouri purchased 2,500 ordinary shares in the company on 26 February 202...
Business Operations and StrategyExecutive/Board Changes
Watches of Switzerland Adds Veteran CFO Paul Edgecliffe-Johnson to Board
Positive
Feb 19, 2026
Watches of Switzerland Group PLC has appointed Paul Edgecliffe-Johnson as a non-executive director with immediate effect, adding him to its Audit Risk, Remuneration, Nomination and ESG committees. He will become chair of the Audit Risk Committee...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.