Watches of Switzerland Group (WOSG) H1 2025 earnings summary

Executive summary

• H1 FY25 performance met expectations, with 4% revenue growth at constant currency and sequential improvement in Q2, driven by strong US and UK demand and successful integration of Roberto Coin and Hodinkee.

• Pre-owned, especially Rolex Certified Pre-Owned, is a key growth driver and now the #2 brand in the business.

• Major showroom projects and expansions, including new flagships and refurbishments, underpin a strong H2 sales outlook.

• Full-year FY25 guidance remains unchanged, supported by robust Q3 trading and ongoing integration of acquisitions.

• U.S. sales now represent 45% of total, up from 24% in FY19, reflecting strategic growth.

Financial highlights

• H1 FY25 revenue was £785m, up 4% at constant currency and 3% reported; Q2 up 11% sequentially.

• Adjusted EBIT was £66m (8.4% margin), down 9–10% year-over-year; adjusted EBITDA £87m (11.1% margin), down 7%.

• Adjusted EPS was 18.1p, down 16% year-over-year; statutory operating profit £60m, profit before tax £41m.

• Free cash flow was £28m, down 50% year-over-year, with conversion at 32% (vs. 60% prior year).

• Net debt at period end: £120m; leverage at 0.7x EBITDA.

Outlook and guidance

• Full-year FY25 revenue guidance is £1.67–£1.73bn (+9–12% constant currency), with adjusted EBIT margin to expand by 0.2–0.6pp.

• Free cash flow conversion expected at ~70% for the year, weighted to H2.

• Capital expenditure for the year guided at £60–70m, with spend front-loaded in H1.

• Guidance assumes confirmed supply, project timing, and a £/$ 1.26 exchange rate.

• Sequential improvement in U.K. and U.S. expected to continue, with strong H2 pipeline and major store openings.