Watches of Switzerland Share Price Rose 2.86% on H1 ’24 Results

The Watches of Switzerland Group PLC (LON: WOSG) share price rose 2.86% after releasing its H1 fiscal year 2024 results for the 26 weeks to 29 October 2023. The company reported a steady revenue of £761 million, marginally lower than the previous year's £765 million. 

The stability in revenue is attributed to a 2% increase at constant currency, countered by flat reported rates. The luxury watch segment continued to grow, although the broader jewellery market saw a decline due to shifting consumer sentiment and a move towards full-price sales in the US.

The Group's expansion of showrooms and the introduction of Rolex Certified Pre-Owned in the US and UK markets showed promising early results. However, Group e-commerce sales saw a 3% decline at constant currency.

Adjusted EBIT was £73 million, slightly higher than the forecast of £70-72 million but down 15% on a reported basis from £87 million in H1 FY23. The adjusted EBIT margin stood at 9.6%, affected by Interest-Free Credit headwinds. 

Statutory operating profit was £78 million, a 16% decrease from the previous year. The Group invested £48 million in expansionary capital expenditure, focusing on new showrooms and refurbishments.

The Group ended with a net cash position of £16 million as of 29 October 2023, an improvement from the net debt of £26 million the previous year. 

In the US, the Group saw a revenue of £328 million, an 11% increase at constant currency. This growth is attributed to strong core business performance and further investments in showrooms.

The UK and Europe markets, however, experienced a 4% decline in revenue to £433 million, impacted by showroom upgrades and the timing of product intake.

Brian Duffy, Chief Executive Officer, said: “Our good first half performance reflects the Group's growing leadership position in our chosen markets as the strength of our longstanding brand partnerships and our proven business model continue to drive our performance forward. We are particularly pleased with our performance in the US, where we grew revenue +11% in the period, and the US now comprises 43% of Group revenue. The consumer environment in the UK continues to be more challenging, and UK and Europe revenue was -4% in the period, impacted by the timing of product intake in Q1 FY24 and temporary showroom closures for refurbishment.”

Watches of Switzerland (WOSG) share price. 

The Watches of Switzerland share price rose 2.86% to trade at 666.0p from Wednesday’s closing price of 647.5p