Watches Of Switzerland Group Sees Stock Surge

Shares of Watches Of Switzerland Group (LON:WOSG) jumped on Tuesday after the luxury watch and jewelry 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.

The company stated in a stock exchange filing that trading over the first 18 weeks of the current financial year has met expectations:

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

Positive Outlook

The upbeat forecast 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. This reflects a recovery in the UK luxury watches and jewelry market following previous macroeconomic challenges.

Integration of Roberto Coin Inc.

Since acquiring Roberto Coin Inc. in May 2024, integration is progressing well. Retail partners have provided positive feedback, and initial sell-out figures are encouraging. Watches of Switzerland is working closely with Roberto Coin to identify growth opportunities in the US market, including expanding mono-brand boutiques and establishing concession models with department store partners.

Global Expansion

The group is also expanding its luxury jewelry portfolio globally, launching David Yurman and Repossi in the UK. They report good progress on the Manchester luxury jewelry boutique, anticipated to open in April 2025 as the exclusive retail partner for several luxury jewelry brands outside of London.

Additionally, the Mappin & Webb store in Edinburgh and a new 2,000 sq. ft Patek Philippe room at Betteridge in Greenwich, Connecticut have been opened.

Upcoming Projects

For the second half of FY25, several key projects are planned:
– 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.
– The conversion of Mayors Lenox in Atlanta into a Rolex boutique in the third quarter of FY25.
– Expansion of the Plano, Texas location to include a new Rolex agency, also set for the third quarter of FY25.