Full Year 2025 Watches of Switzerland Group PLC Earnings Call Transcript
Key Points
- Watches of Switzerland Group PLC (WOSGF) achieved record sales of EUR1.652 billion in fiscal year '25, marking an 8% increase in constant currency compared to the previous year.
- The US division surpassed a significant milestone with sales exceeding $1 billion, contributing to 48% of the group's total revenue.
- The company has successfully expanded its showroom portfolio, including new Rolex boutiques in key locations such as London and the US, and plans further investments in FY '26 and '27.
- The acquisitions of Roberto Coin Inc and Hediki are progressing well, with promising growth prospects in the luxury branded jewelry sector.
- The certified pre-owned (CPO) program for Rolex and other brands has exceeded expectations, indicating strong demand in the pre-owned luxury watch market.
- The luxury watch market faces challenges with demand exceeding supply, leading to long-term price inflation and potential volatility.
- The UK market experienced significant volatility post-COVID, with high inflationary prices impacting consumer sentiment.
- The impact of US tariffs on imported goods from Switzerland has led to mid-single-digit price increases by some brand partners, affecting margins.
- There is uncertainty regarding the future of US tariffs, which could impact the company's financial performance and guidance for FY '26.
- The company faces challenges in managing inventory levels, particularly in the context of accelerated intake by brands in anticipation of tariffs.
Good morning and thank you for joining our presentation of the final results, the Watch for Switzerland Group for fiscal year '25. You'll be hearing firstly from me, Brian Duffy, CEO of the group, and then David Hurley, President of North America and Deputy Group CEO, then Craig Bolton, President, UK, and finally, last but not least, Anders Romberg, our group CFO.
I'll then have some closing remarks before opening the lines for your questions.
In fiscal year '25, we achieved record sales of EUR1.652 billion. That was plus 8% in constant currency versus prior year, and we had a stronger second half gross achieving plus 12%. A US division passed an important milestone achieving sales of over $1 billion in the fiscal year.
Adjusted EBIT of EUR150 million was 12% ahead of last year, representing an improvement in profitability of 30 bits, and we ended with a decent balance sheet. Throughout the year we continued with our strategy of investing for profitable growth through developing our
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