Watches of Switzerland Group H2 Earnings Call Highlights

2 months ago 37

Watches of Switzerland Group (LON:WOSG) reported grounds fiscal 2026 income and stronger nett growth, arsenic gains successful the U.S. helped offset a "complex and changeable" backdrop that included tariffs, higher golden prices, borderline unit and continued user unit successful the U.K.

Group CEO Brian Duffy said income for the twelvemonth reached GBP 1.828 billion, up 13% successful changeless currency from the anterior year. The U.S. grew 24% successful changeless currency and became the group's largest marketplace by some gross and profit, portion the U.K. roseate 5%. Duffy said show improved successful the 2nd half, with radical income up 17% successful changeless currency compared with 10% maturation successful the archetypal half.

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Adjusted EBIT accrued 6% successful changeless currency to GBP 155 million, portion statutory nett earlier taxation roseate 75% twelvemonth implicit twelvemonth to GBP 133 million. Duffy said fiscal 2026 was a "record year" for the group, noting that gross has compounded astatine 15.5% annually betwixt fiscal 2015 and fiscal 2026.

U.S. Becomes Largest Market

Duffy said the U.S. accounted for 51% of radical income successful fiscal 2026, surpassing the U.K. The company's concern remains mostly domestic, with 95% of income from home customers. Duffy said planetary income successful the U.K. person remained constricted since VAT-free buying was removed pursuing Brexit implementation successful 2021.

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The U.S. concern accelerated successful the 2nd half, increasing 27% successful changeless currency. Duffy said maturation was broad-based and supported by underlying demand, Roberto Coin, ecommerce, pre-owned watches, showroom investments and the acquisition of Deutsch & Deutsch.

The institution completed the acquisition of Deutsch & Deutsch successful January, adding 4 Texas locations. Duffy said the transaction utilized a caller acquisition exemplary nether which the Deutsch household retained a 12% stake, with Tad Deutsch and Aladar Deutsch remaining successful leadership. The acquisition added 60 colleagues to the group.

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In the U.K., Duffy described maturation of 5% arsenic coagulated against a subdued marketplace backdrop. The institution completed 7 cardinal projects during the year, including enactment astatine Mappin & Webb successful Birmingham and Northern Goldsmiths successful Newcastle. Duffy besides said the Rolex Old Bond Street showroom, which had its archetypal afloat twelvemonth of trading, performed up of program and generated beardown lawsuit feedback, including a Net Promoter Score of 93.