Watches of Switzerland Group (WOSG) H2 2024 earnings summary

Executive summary

• FY 2024 marked continued market normalization, with the group gaining market share in both the U.S. and U.K. luxury watch markets, supported by showroom expansion and a differentiated business model.

• U.S. sales now represent 45% of group sales, rising to 49% including Roberto Coin, reflecting strong growth and successful integration of acquisitions.

• Major investments in showroom expansion, luxury jewelry (notably Roberto Coin), and pre-owned watches are central to the growth strategy.

• ESG initiatives advanced, including a AAA MSCI rating, increased community engagement, and £7.5 million in charitable donations since FY 2021.

• The group remains confident in its FY 2025 guidance and long-term plan to double sales and increase profitability by FY 2028.

Financial highlights

• FY 2024 sales reached £1.538 billion, up 2% at constant currency, with U.S. sales growing 11%.

• Adjusted EBIT was £135 million, down 18% year-over-year, with margin contracting 190 bps to 8.8%.

• Adjusted EPS was 38p, down 28% year-over-year; statutory profit before tax was £92 million.

• Free cash flow was £118 million, with a 66% conversion rate; net cash at year-end was £1 million.

• Inventory rose 10% due to acquisitions and pre-owned business investment.

Outlook and guidance

• FY 2025 sales expected between £1.67–£1.73 billion (+9% to +12% in constant currency).

• Adjusted EBIT margin forecast to expand by 0.2–0.6 percentage points.

• Capital expenditure planned at £60–£70 million; free cash conversion targeted at ~70%.

• Long-range plan targets more than doubling sales and EBIT by FY 2028, with significant investments in showrooms, acquisitions, and e-commerce.