Watches of Switzerland Group LON:WOSG, the UK-based retailer of high end luxury watches and jewellery has published its 1H23 results to 30th October.
As previously reported WOSG was expecting a good year, and last month reported an increase in group revenue, of 23% to GBP765m when compared to 1H22 on a constant currency basis, and a 31% increase on a reported currency basis.
Watches of Switzerland sees strong demand
The company confirmed Group revenue GBP765m compared to GBP586m for 1H22 with: “…continued strong demand for luxury watches and jewellery, with growth driven by increases in average selling price and volume.”
Brian Duffy, the company’s chief executive said in a statement to the stock exchange: “”Trading in the Holiday period so far has been in line with our expectations and our guidance for FY23 remains unchanged. We look ahead with confidence as we continue to deliver on our long-range plan objectives of maintaining our leadership position in the UK, becoming the clear leader in the US, and capitalising on the growth potential in Europe.”
Adjusted EBIT was up 29% to GBP87m, compared to GBP67m in 1H22, with Adjusted EBIT margin of 11.3%.
WOSG opened business on 15th December at 908p, but fell to 869p before recovering to 897p by mid-morning. The FTSE250 company has offered a year-to-date return of -36.8% with shares ranging between 632.5p and 1,600p over a 52-week period, giving the company a market cap of GBP2.2bn
Duffy said: “Trading in the first six weeks of Q3 is in line with our expectations, and our FY23 guidance, as provided on 9th November, is unchanged reflecting current visibility of supply of key brands, announced pricing, and confirmed showroom refurbishments, openings, and closures and excludes uncommitted capital projects and acquisitions.”
WOSG reiterated its FY23 guidance as its 3Q22 trading to date has been in line with expectations and expects full-year revenue of between GBP1.5bn and GBP1.55bn, and adjusted EBIT of between GBP163m and GBP175m.
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Deshe Analytics rated WOSG as a ‘Hold’ saying: “[The group’s] recently released results from 3Q22 indicate that WOSG is performing reasonably well and on par with its peers. It is highly likely that it will be mostly tethered to market performance and sector movements for the near term. We gave Watches of Switzerland Group plc a 66 rating.”