Watches of Switzerland Shares Drop as Revenue Misses Consensus Expectations

Watches of Switzerland (LON: WOSG) shares fell in early Thursday trading after the luxury retailer posted full-year results that missed consensus expectations for revenue.

Revenue for the 52 weeks to April 27, 2025, rose 8% at constant currency to a record £1.65 billion. However, it was below the analyst consensus of £1.67 billion. The company attributed its revenue performance to stronger trading in the second half, with notable growth in the US.

Adjusted EBIT came in at £150 million, up 12% year over year, and above the £148.8 million consensus forecast.

Despite reporting record annual sales, operating profit dropped 5% to £114 million, while statutory pre-tax profit declined 18% to £76 million. Statutory basic earnings per share also slipped 9% to 22.8 pence.

Adjusted earnings per share came in at 41.6p, slightly above the consensus estimate of 41.1p.

The stock was down more than 9% in early trading. Shares are now down roughly 28% for the year-to-date.

CEO Brian Duffy emphasised the group’s strong second-half performance, especially in the US, where revenue rose 16% in constant currency. 

“Our US business has continued its excellent momentum, surpassing $1 billion revenue for the first time,” Duffy said, highlighting the contribution from the recently acquired Roberto Coin luxury jewellery brand.

Looking ahead, the group forecast revenue growth of 6% to 10% for FY26 but warned of ongoing macroeconomic uncertainty and potential US tariff changes. 

It expects flat to slightly lower EBIT margins in the year ahead compared to last year, with capital expenditure between £65 million and £70 million.