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Watches of Switzerland Group PLC
(LSE:WOSG)
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Rating:73Outperform
Price Target:
721.00 p
▲(0.35% Upside)
Action:Reiterated
Date:07/15/26
The score is driven primarily by solid fundamentals (growth and improving cash generation) and strong technical uptrend signals. These positives are moderated by a relatively high P/E valuation and some ongoing margin/earnings variability and leverage considerations, while the latest earnings call guidance and sentiment are supportive.
Positive Factors
U.S. market leadership
The U.S. has become the group’s largest market and primary earnings contributor, while maintaining strong growth. This scale provides meaningful exposure to a powerful luxury market and gives successful U.S. execution a durable influence on group revenue and profitability.
Negative Factors
Margin pressure
Recent margin compression shows that revenue growth is not translating fully into operating profit. Adverse product mix, tariffs and higher gold prices can continue to affect gross profit, making earnings less predictable and placing greater importance on mix improvement and cost leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
U.S. market leadership
The U.S. has become the group’s largest market and primary earnings contributor, while maintaining strong growth. This scale provides meaningful exposure to a powerful luxury market and gives successful U.S. execution a durable influence on group revenue and profitability.
Read all positive factors
Watches of Switzerland Group PLC (WOSG) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.51B
Dividend YieldN/A
Average Volume (3M)566.58K
Price to Earnings (P/E)15.6
Beta (1Y)1.46
Revenue Growth10.68%
EPS Growth86.68%
CountryUK
Employees2,942
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.42
Shares Outstanding233,301,620
10 Day Avg. Volume845,551
30 Day Avg. Volume566,579
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)1.89
Price to Sales (P/S)0.65
P/FCF Ratio6.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£835.00Price Target Upside16.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)0.52
Revenue Forecast (FY)£1.99B
Watches of Switzerland Group PLC Business Overview & Revenue Model
Company Description
Watches of Switzerland Group PLC operates primarily as a leading retailer of high-end timepieces and associated luxury items. Its extensive product catalog features prestigious watches, fine jewelry, and a selection of both contemporary and classi...
How the Company Makes Money
WOSG makes money primarily by retailing luxury watches and jewellery to end customers through (1) physical stores/boutiques and (2) online sales. The core revenue stream is product sales: the company purchases inventory (or sources products under ...
Watches of Switzerland Group PLC Earnings Call Summary
Earnings Call Date:Jul 14, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Positive
The call emphasizes a strong operational year with record revenue, robust U.S. outperformance, solid cash generation and strategic progress (acquisitions, showroom investment, ecommerce and pre-owned growth). Headwinds included margin pressure from tariffs, higher gold costs and a one-off debtor write-off, but these negatives were relatively contained versus the scale of growth and cash strength. Management reiterated constructive guidance for FY2027 while flagging standard caveats around supply and uncommitted projects.Positive Updates
Record Revenue and Strong Top-Line Growth
Group sales of GBP 1.828 billion in FY2026, up 13% year-on-year in constant currency (11% at reported rates); revenue CAGR of 15.5% between FY2015 and FY2026.
Negative Updates
Margin Compression
Adjusted EBIT margin declined 60 basis points to 8.5% year-on-year, driven by a net product margin fall of c.70 basis points due to adverse product mix, U.S. tariffs and higher gold prices.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Strong Top-Line Growth
Group sales of GBP 1.828 billion in FY2026, up 13% year-on-year in constant currency (11% at reported rates); revenue CAGR of 15.5% between FY2015 and FY2026.
Read all positive updates
Company Guidance
Guidance for FY 2027 is for constant‑currency revenue growth of 5–10% on the FY26 base of £1.828bn (implying ~£1.92bn–£2.01bn), adjusted EBIT margin expansion of 40–80 basis points from the FY26 margin of 8.5% (implying ~8.9%–9.3%), and capital expenditure of £60–70m (versus £66m showroom investment in FY26); the outlook is prepared on a 52‑week trading period (versus 53 weeks in FY26), is conditional on visibility of key brand supply, and reflects confirmed showroom projects but excludes uncommitted capex and acquisitions. For context, FY26 delivered adjusted EBIT of £155m, free cash flow of £162m, net debt of ~£56–57m (net debt/EBITDA ~0.3x), ROCE 18% and cash conversion 80%; management also noted FX sensitivity of roughly $0.05 = $30m sales / $4.5m EBIT.Watches of Switzerland Group PLC Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.83B | 1.65B | 1.54B | 1.54B | 1.24B |
| Gross Profit | 237.20M | 211.20M | 189.40M | 226.40M | 188.70M |
| EBITDA | 279.60M | 213.60M | 220.10M | 264.60M | 212.80M |
| Net Income | 99.00M | 53.80M | 59.10M | 121.80M | 101.00M |
Balance Sheet | |||||
| Total Assets | 1.46B | 1.48B | 1.33B | 1.24B | 1.03B |
| Cash, Cash Equivalents and Short-Term Investments | 65.10M | 79.70M | 115.70M | 136.40M | 105.90M |
| Total Debt | 548.10M | 647.40M | 573.70M | 530.40M | 459.20M |
| Total Liabilities | 832.40M | 936.00M | 804.40M | 765.70M | 668.70M |
| Stockholders Equity | 628.70M | 539.60M | 523.00M | 469.30M | 361.30M |
Cash Flow | |||||
| Free Cash Flow | 174.30M | 108.30M | 107.30M | 136.90M | 129.30M |
| Operating Cash Flow | 242.60M | 183.70M | 191.30M | 211.90M | 170.30M |
| Investing Cash Flow | -106.80M | -178.00M | -121.10M | -95.50M | -88.10M |
| Financing Cash Flow | -169.40M | -21.10M | -91.70M | -85.20M | -55.70M |
Watches of Switzerland Group PLC Technical Analysis
Negative
718.50
Price Trends
716.75
Negative
687.15
Negative
587.16
Positive
Market Momentum
-21.14
Positive
38.21
Neutral
18.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WOSG, the sentiment is Negative. The current price of 718.5 is above the 20-day moving average (MA) of 683.03, above the 50-day MA of 716.75, and above the 200-day MA of 587.16, indicating a neutral trend. The MACD of -21.14 indicates Positive momentum. The RSI at 38.21 is Neutral, neither overbought nor oversold. The STOCH value of 18.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | £1.51B | 15.58 | 16.31% | ― | 10.68% | 86.68% | |
68 Neutral | £3.65B | 8.67 | 15.14% | 1.57% | 10.51% | -9.26% | |
67 Neutral | £3.36B | 8.89 | 15.67% | 4.55% | 8.13% | 28.46% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
57 Neutral | £622.15M | 26.91 | 6.89% | 3.81% | -2.88% | 425.53% | |
50 Neutral | £3.50B | 175.78 | 2.29% | 5.03% | -1.67% | ― | |
50 Neutral | £189.43M | -22.98 | 78.71% | 0.56% | 4.22% | 74.45% |
* Consumer Cyclical Sector Average
GB:WOSG
Watches of Switzerland Group PLC
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Watches of Switzerland Group PLC Corporate Events
Business Operations and StrategyStock BuybackShareholder Meetings
Watches of Switzerland Wins Full Shareholder Backing at 2026 AGM
Positive
Sep 3, 2026
Watches of Switzerland Group PLC reported that all resolutions at its annual general meeting on 3 September 2026 were approved by shareholders via poll vote. Investors backed the receipt of the annual report, the directors’ remuneration repo...
Business Operations and StrategyFinancial Disclosures
Watches of Switzerland Maintains Strong Trading and Reiterates FY27 Guidance
Positive
Sep 3, 2026
Watches of Switzerland Group reported that trading over the 17 weeks to 30 August 2026 has remained in line with the strong momentum seen at its full-year results, supported by robust US demand and improving market conditions in the UK. Growth has...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Watches of Switzerland Sets Out 2026 Risks and Strategy in New Annual Report
Neutral
Aug 3, 2026
Watches of Switzerland Group PLC has published its Annual Report and Accounts 2026 and the Notice of its upcoming Annual General Meeting, making both documents available via regulatory channels and on its corporate website. These filings follow th...
Business Operations and StrategyExecutive/Board Changes
Watches of Switzerland Ties Executive Awards to EPS and ROCE Targets
Positive
Jul 17, 2026
Watches of Switzerland Group PLC is a leading retailer of luxury timepieces and fine jewellery, operating primarily in the U.K. and internationally. The group focuses on selling high-end mechanical watches and related accessories through a mix of ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Watches of Switzerland Delivers Record Revenue and Reaffirms Growth Outlook
Positive
Jul 14, 2026
Watches of Switzerland Group posted record FY26 revenue of £1.83 billion, up 13% in constant currency, with the US now contributing more than half of sales and profit, while UK demand remained resilient. Adjusted EBIT rose 6% in constant curr...
Business Operations and StrategyFinancial Disclosures
Watches of Switzerland to Host Live Investor Presentation After FY26 Results
Positive
Jul 9, 2026
Watches of Switzerland Group PLC will host a live, interactive investor presentation on the Engage Investor platform on 17 July 2026 at 12:00 pm BST, following the release of its FY26 results on 14 July 2026. Individual shareholders and other inve...
Business Operations and StrategyFinancial Disclosures
Watches of Switzerland to Unveil FY26 Results and Outline Growth Plans
Positive
Jun 26, 2026
Watches of Switzerland Group PLC will release its FY26 results on 14 July and has scheduled a webcast and QA for analysts and investors that morning to discuss the financial performance. Later the same day, management will host an in-person event ...
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.