Watches of Switzerland Confident in Delivering FY25 Guidance

Watches of Switzerland Group (LON: WOSG) said in a trading update on Tuesday that trading for the first 18 weeks of the financial year has been in line with expectations.

The company, which has seen its share price decline more than 45% in 2024 due to a decline in profitability, also told investors that it is confident in delivering its FY25 guidance as it continues to make progress against its Long Range Plan.

“Demand for our key luxury brands, particularly products on Registration of Interest lists, remains strong in both the UK and US markets, outstripping supply, with consistent additions and conversions,” said Watches of Switzerland.

They note that the UK market has shown signs of stabilisation following a period of challenging macroeconomic conditions. Meanwhile, in the US, WOSG is increasing showroom stock levels to enhance displays and client experience.

Furthermore, WOSG's integration of Roberto Coin Inc., acquired in May 2024, is progressing as planned.

The company said it has received positive feedback from retail partners and is actively negotiating new mono-brand boutiques and concession models in the US.

Additionally, WOSG has announced the exclusive launches of David Yurman and Repossi in the UK.

WOSG has continued its showroom development program, with recent openings in Edinburgh and Connecticut. Key projects, including a new flagship Rolex boutique in London and an Audemars Piguet Townhouse in Manchester, are expected to open in the second half of the year.

“Based on current trading, confidence of supply in both markets, increased certainty on the timing of key showroom projects, and visibility of new product launches, we have confidence in delivering our FY25 guidance as set out at the FY24 results,” concluded the company.

In its FY24 results, WOSG said it sees revenue for FY25 between £1.67 billion and  £1.73 billion, growing between 9% and 12% at constant currency.