Watches of Switzerland Group PLC (WOSG) AI Stock Analysis

• Market Cap: £1.08B
• Dividend Yield: N/A
• Average Volume (3M): 631.43K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 1.30
• Revenue Growth: 1.45%
• EPS Growth: -61.69%
• Country: UK
• Employees: 2,769
• Sector: Consumer Cyclical
• Sector Strength: 53
• Industry: Retail - Discretionary
• EPS (TTM): 0.17
• Shares Outstanding: 239,570,300
• 10 Day Avg. Volume: 721,224
• 30 Day Avg. Volume: 631,428
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.73
• Price to Cash Flow (P/CF): 8.00
• P/FCF Ratio: 13.40
• 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: 565.00p
• Price Target Upside: 25.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Watches of Switzerland Group PLC's overall stock score is driven by solid financial performance and positive technical indicators. The company's strong trading performance and strategic expansions bode well for future growth. However, a high valuation and declining free cash flow pose potential risks. The robust corporate events further support the company's growth narrative.

Positive Factors

Market Demand

US demand for watches & jewellery remains good across all price points post-election.

Sales Momentum

Sales momentum improved sequentially from -2% in 1Q25 to +11% in 2Q25, with a strong start to the holiday season.

Negative Factors

Profitability Challenges

Profitability was weak in the first half of FY25 due to stock buildup, adverse product mix, and fixed cost challenges, resulting in a lower EBIT margin compared to the previous year.

Watches of Switzerland Group PLC Business Overview & Revenue Model

Company Description

Watches of Switzerland Group PLC is a retailer of luxury watches in the United Kingdom. Other than luxury watch offerings, the company also offers luxury jewellery, fashion, and classic watches and a range of watch and jewellery aftercare services. The company's geographical segments are the United Kingdom and the United States, of which the majority of the revenue comes from the United Kingdom.

How the Company Makes Money

Watches of Switzerland Group PLC generates revenue primarily through the sale of luxury watches and jewelry in its retail stores and online platforms. The company's key revenue streams include direct sales from its branded boutiques and multibrand showrooms, as well as through its e-commerce website. WOSG benefits from strategic partnerships with high-end watch manufacturers, which enable it to offer exclusive and limited-edition products that attract affluent customers. The company also earns from after-sales services, including watch repairs and maintenance, which enhance customer loyalty and drive repeat business. Additionally, WOSG's presence in key luxury markets like the US and UK ensures a steady flow of affluent clientele, contributing significantly to its overall earnings.

Watches of Switzerland Group PLC Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
1.54B	1.54B	1.24B	905.10M	810.51M
	Gross Profit
189.40M	226.40M	188.70M	123.30M	99.25M
	EBIT
120.00M	178.80M	143.60M	92.60M	69.75M
	EBITDA
220.10M	264.60M	212.80M	117.20M	74.90M
	Net Income Common Stockholders
59.10M	121.80M	101.00M	50.60M	507.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
115.70M	136.40M	105.90M	76.10M	72.93M
	Total Assets
1.33B	1.24B	1.03B	827.20M	852.20M
	Total Debt
573.70M	530.40M	459.20M	419.25M	507.68M
	Net Debt
458.00M	394.00M	353.30M	343.15M	434.75M
	Total Liabilities
804.40M	765.70M	668.70M	576.90M	652.66M
	Stockholders Equity
523.00M	469.30M	361.30M	250.30M	199.54M
Cash Flow		Free Cash Flow
107.30M	136.90M	129.30M	147.70M	72.85M
	Operating Cash Flow
191.30M	211.90M	170.30M	171.80M	95.20M
	Investing Cash Flow
-121.10M	-95.50M	-88.10M	-23.60M	-59.70M
	Financing Cash Flow
-91.70M	-85.20M	-55.70M	-143.40M	1.52M

Watches of Switzerland Group PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 451.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: 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 451.4 is below the 20-day moving average (MA) of 520.40, below the 50-day MA of 528.40, and below the 200-day MA of 454.34, indicating a neutral trend. The MACD of -20.36 indicates Positive momentum. The RSI at 27.59 is Positive, neither overbought nor oversold. The STOCH value of 9.33 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WOSG	74 Outperform	£1.08B	26.05	11.30%	―	1.45%	-61.69%
JMAT	70 Outperform	£2.44B	5.01	4.54%	5.28%	-15.51%	200.70%
Sector *	60 Neutral	$13.01B	10.45	0.79%	3.53%	1.60%	-22.47%

Watches of Switzerland Group PLC Corporate Events

Watches of Switzerland Group Maintains Positive Momentum in FY25

Watches of Switzerland Group PLC reported that trading over the holiday period in both the UK and US was robust, aligning with expectations and supporting their FY25 guidance. Strong demand for luxury brands, particularly products on registration lists, continues to outpace supply, aiding market share gains in both regions. The integration of recent acquisitions and showroom expansions, including new Rolex boutiques, are progressing well, enhancing the company’s strategic positioning. The Group’s financial stability is reinforced by refinancing efforts, providing additional liquidity and flexibility. Overall, the Group is confident in achieving its FY25 targets due to favorable trading performance, supply visibility, and upcoming showroom developments.

Watches of Switzerland Sees Strong H1 Growth Amid Expansion

Watches of Switzerland Group PLC reported a promising 4% revenue growth in constant currency for H1 FY25, driven by strong demand in the UK and US, and bolstered by the acquisition of Roberto Coin. The company saw a significant 11% revenue boost in Q2, fueled by strategic stock increases and modest price hikes, alongside the launch of new showrooms and successful integration of Hodinkee. Despite a drop in adjusted EBIT and free cash flow, the company remains optimistic about its full-year outlook, supported by upcoming showroom openings and steady trading momentum.