Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • WOSG revenue reached GBX 1,652 million in FY25, up 8% YoY in constant currency
  • Watches of Switzerland reported lower operating profit at GBX 114 million, down 5% YoY
  • Company completed acquisitions of Roberto Coin Inc. and Hodinkee, adding to US presence

Watches of Switzerland Group PLC (LSE:WOSG), a specialist in luxury watches and branded jewellery, reported its financial results for the 52 weeks ending 27 April 2025 (FY25), with revenue increasing by 8% year-over-year at constant currency to a record GBX 1,652 million. The company attributed the growth to improved performance in the second half of the year, particularly in its U.S. operations and contributions from recent acquisitions.

The U.S. market accounted for GBX 786 million in revenue, reflecting 16% growth at constant currency, while the UK and Europe segment delivered GBX 866 million in revenue, representing a 2% increase. In H2 FY25, group revenue rose 12% YoY, compared to 4% growth in the first half.

Adjusted EBIT for the year increased 12% YoY in constant currency to GBX 150 million, with a margin of 9.1%, up from 8.8% the previous year. However, operating profit declined 5% YoY to GBX 114 million. Free cash flow dropped to GBX 98 million from GBX 118 million in FY24, and the company moved from a net cash position of GBX 1 million to net debt of GBX 96 million due to the acquisitions of Roberto Coin Inc. and Hodinkee.

The company launched a GBX 25 million share buyback programme in March 2025, of which GBX 11.3 million was executed during the financial year. Watches of Switzerland also completed key showroom expansions in the UK and U.S., including the opening of a new flagship Rolex boutique on Old Bond Street, London, and developments across Texas, Florida, Atlanta, and Connecticut. Capital expenditure for showroom expansion totalled GBX 73 million.

The company recorded a 2% YoY growth in luxury watch revenue in constant currency, supported by demand for key brands. Certified Pre-Owned sales contributed meaningfully, with Rolex Certified Pre-Owned emerging as the second-largest watch brand equivalent within the group. Luxury jewellery revenue surged by 108% in constant currency, driven primarily by the acquisition of Roberto Coin Inc.

Integration of Roberto Coin Inc. is underway, with performance tracking in line with internal expectations. The company has signed leases for three new mono-brand boutiques in the U.S. and is working on shop-in-shop formats. A marketing campaign featuring brand ambassador Dakota Johnson launched in May 2025.

Watches of Switzerland also made progress with its digital platform following the acquisition of Hodinkee, which serves luxury watch enthusiasts. The company launched an upgraded U.S. ecommerce site in May 2025, with further rollouts expected.

Looking ahead to FY26, the company cited a cautious macroeconomic environment, geopolitical factors, and the potential impact of U.S. tariff adjustments on Swiss imports. Nonetheless, it maintains its guidance based on the continuation of the 10% U.S. tariff, price and margin changes implemented by brand partners, and stable supply visibility for key watch brands through 2025.

FY26 growth initiatives include the opening of new showrooms such as the Mappin & Webb Luxury Jewellery Boutique in Manchester and the relocation of key locations in Florida and Minneapolis. The guidance excludes any uncommitted acquisitions or capital projects.

As of 3 July 2025, WOSG shares were trading 5.17% lower at GBX 399.80 per share.