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Watches of Switzerland Group - Q2 sees positive inflection point

January 2025

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • WOSG
  • Price:
  • 531p
WOSG’s shares soared after interims showed a positive inflection in Q2 vs. Q1 and now stand 34% over my main write-up in June. Overall, H1 sales grew 4% ex-fx to £784.8m. Pretax profit and EPS were down 18%/16% to £58.9m/18.1p. Geographically, the UK saw sales down by 1% in H1 to £429.9m, but what has cheered investors are comments that the region “turned positive” in Q2 for both luxury watch revenue and luxury jewellery revenue (-4% Q1 and +2% Q2). Q3 also went well with Black Friday “surprisingly strong.” The US saw sales up 8% to £355m (adjusted for the volatility in $/£ in recent months), which were accreted to +11% by a first-time consolidation of Roberto Coin of £52m, as well as by one-off increases in showroom stock ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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