Watches of Switzerland’s Shares Rose 2.83% on Q3 FY24 Results

The Watches of Switzerland Group PLC (WOSG) share price rose 2.83% after its Q3 FY 2024 results were released. The group's revenue for the third quarter of the fiscal year 2024 amounted to £397 million, a slight decrease from £407 million in the same quarter of the previous year, marking a 1% decline at constant currency and a 3% fall at reported rates.

Over the first nine months of FY24, the group's revenue reached £1,158 million compared to £1,172 million in the same period last year, showing a modest increase of 1% at constant currency but a slight decrease of 1% at reported rates.

As highlighted in the Trading Update on January 18, 2024, the period leading up to and following Christmas presented more challenges than anticipated, especially in the UK, where the demand for high-end discretionary items saw a slowdown.

However, interest in our flagship brands, especially those products on the Registration of Interest lists, remained high, with steady growth in interest and purchases.

In the third quarter of FY24, revenue from luxury watches rose by 1% at constant currency to £336 million, accounting for 85% of total revenue, up from 84% in the previous year's quarter. Meanwhile, luxury jewellery experienced a 16% decrease at constant currency to £34 million, with the growth of branded luxury jewellery being overshadowed by a decline in non-branded jewellery sales.

E-commerce revenue for the group fell by 15% at reported rates compared to the previous year, influenced by the product mix sold through this channel and the performance in the UK market.

The company continues to see positive trends in the pre-owned segment, now operating in 14 agencies for Rolex Certified Pre-Owned in the US and 10 in the UK, alongside the addition and expansion of prestigious luxury jewellery brands to its portfolio.

In the US, revenue stood at £175 million for Q3 FY24, up 8% at constant currency and 3% at reported rates from the previous year, with the first nine months of FY24 seeing revenue of £502 million, marking a 10% increase at constant currency and 5% at reported rates. 

In the UK & Europe, revenue was £222 million in Q3 FY24, a 7% decrease from the previous year, with the first nine months showing a 5% decline to £656 million. 

Watches of Switzerland share price. 

The Watches of Switzerland share price rose 2.83% to trade at 392.2p from Wednesday’s closing price of 381.4p.