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Watches of Switzerland confirms FY25 guidance, shares jump

Published 09/03/2024, 04:04 AM
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WOSG
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Investing.com -- Shares of Watches Of Switzerland Group (LON:WOSG) jumped on Tuesday, after the luxury watch and jewellery retailer reaffirmed its guidance for fiscal year 2025

At 4:05 am (0805 GMT), Watches of Switzerland was trading 8.6% higher at £408.80.

Watches of Switzerland Group PLC in a stock exchange filing said that trading over the first 18 weeks of the current financial year has met the company's expectations. 

“We are on track to deliver our FY25 guidance as we make progress against our Long Range Plan,” the company said. 

The positive outlook is driven by strong demand for major luxury brands and continued improvements in both the UK and US markets.

Demand for luxury products, particularly those on Registration of Interest lists, remains robust in the UK and US, surpassing supply, the company added. This shows a continued recovery in the UK market for luxury watches and jewellery following a period of challenging macroeconomic conditions in the previous financial year.

Since acquiring Roberto Coin Inc. in May 2024, the integration of the brand is on track. Retail partners have provided positive feedback, and initial sell-out figures are promising. 

Watches of Switzerland Group is collaborating closely with Roberto Coin to identify growth opportunities in the US market, such as expanding mono-brand boutiques and establishing concession models with department store partners.

Additionally, the group is expanding its luxury jewellery portfolio globally, with launches of David Yurman and Repossi in the UK. 

“We have made good progress on our Manchester luxury jewellery boutique, and it is anticipated this will open in April 2025. This boutique will be the exclusive retail partner for a number of luxury jewellery brands outside of London,” the company said.

As part of the company's expansion efforts, the Mappin & Webb store in Edinburgh and a new 2,000 sq. ft Patek Philippe room at Betteridge in Greenwich, Connecticut, have been opened

For the second half of FY25, the company plans several key projects: the debut of a flagship Rolex boutique on Old Bond Street in London in March 2025, the launch of the Audemars Piguet Townhouse in Manchester in the fourth quarter of FY25, and the conversion of Mayors Lenox in Atlanta into a Rolex boutique in in the third quarter of FY25. 

Additionally, Watches of Switzerland will expand its Plano, Texas location to include a new Rolex agency, also set for the third quarter of FY25.

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