Watches of Switzerland (LSE: WOSG) reported strong fourth-quarter results, exceeding consensus estimates driven by a 14% sales increase in the US. Despite a 45% year-to-date share price decline, the company’s stock soared 16% on Thursday.
For the fiscal year ended April 28, revenue is expected at £1.54 billion, flat year-over-year on a reported basis but up 2% at constant currency. Adjusted EBIT is anticipated between £133 million and £136 million, down potentially 19% from £165 million previously.
Chief Executive Brian Duffy cited the quarter’s “strong” performance, highlighting Q4 revenue of £380 million, up 3% annually, driven by high demand for key brands. The pre-owned Rolex offering exceeded expectations.
Looking ahead, Watches of Switzerland expressed cautious optimism for fiscal 2025 after “challenging trading conditions” last year. The company noted the industry’s conservative production approach amid volatility to ensure long-term luxury watch market stability.
Fiscal 2025 revenue guidance stands at £1.67 billion to £1.73 billion, representing 9% to 12% constant currency growth.
Furthering its luxury branded jewellery strategy, Watches of Switzerland acquired Roberto Coin Inc for $130 million, the exclusive North American distributor of the Roberto Coin brand, the sixth-largest US jewellery label by retail sales.
Subscribe to Investomania for more Watches of Switzerland news and updates.
