Watches of Switzerland GroupWOSGF -2.09%85 Gross Margin % is 12.03% as of Oct. 2025, which is 3% above its 10-year median of 11.71. GuruFocus rates WOSGF with a GF Score™ of 85/100 and a GF Value™ of $7.35 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Watches of Switzerland Group ranks worse than 87.11% on this metric.
Watches of Switzerland Group (OTCPK:WOSGF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Watches of Switzerland Group had a gross margin of 12.03% for the quarter that ended in Oct. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Watches of Switzerland Group Gross Margin % Related Terms
Watches of Switzerland Group Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Luxury Goods subindustry, Watches of Switzerland Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Watches of Switzerland Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Watches of Switzerland Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Watches of Switzerland Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Watches of Switzerland Group (WOSGF) has a Gross Margin % of 12.03% as of Oct. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Watches of Switzerland Group and its competitors. This is near median its historical median of 11.71. Over the past decade, Watches of Switzerland Group's Gross Margin % has ranged from 6.67 to 14.64. According to the industry distribution chart, Watches of Switzerland Group ranks #973 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 87.1%.
Is Watches of Switzerland Group's Gross Margin % too high?
Watches of Switzerland Group's current Gross Margin % of 12.03% is near median its 10-year median of 11.71. Over the past 10 years, this metric has ranged from a low of 6.67 to a high of 14.64. The Retail - Cyclical industry median Gross Margin % is 36.23. Watches of Switzerland Group's value of 12.03% is 66.8% below this industry median. Based on the distribution chart, Watches of Switzerland Group ranks #973 out of 1117 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Watches of Switzerland Group has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watches of Switzerland Group's Gross Margin % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Watches of Switzerland Group ranks #973 out of 1117 companies for Gross Margin %. This places Watches of Switzerland Group in the lower half of its industry. The industry median Gross Margin % is 36.23. Watches of Switzerland Group's value of 12.03% is 66.8% below this benchmark. Historically, Watches of Switzerland Group's own Gross Margin % has ranged from 6.67 to 14.64 over the past decade. While the company's 10-year median is 11.71 vs. the industry median of 36.23, Watches of Switzerland Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Watches of Switzerland Group's current Gross Margin % of 12.03% is 66.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Watches of Switzerland Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Watches of Switzerland Group's current Gross Margin % is 12.03%, which is near median its own 10-year median of 11.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watches of Switzerland Group stock overvalued right now?
Based on GuruFocus' analysis, Watches of Switzerland Group (WOSGF) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.35, compared to a current price of $9.20 — trading 25.2% above its estimated fair value. The current Gross Margin % is 12.03%, which is near median its 10-year median of 11.71 and 66.8% below the Retail - Cyclical industry median of 36.23. Watches of Switzerland Group's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Watches of Switzerland Group (WOSGF), the current Gross Margin % is 12.03% as of Oct. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Watches of Switzerland Group (WOSGF) Overvalued in 2026?
Based on GuruFocus' analysis, Watches of Switzerland Group stock appears to be overvalued.
The current stock price of $9.20 is trading 25.2% above its estimated GF Value™ of $7.35.
GuruFocus considers Watches of Switzerland Group to be Modestly Overvalued.
Key valuation signals for WOSGF:
Gross Margin %: 12.03% (near median its 10-year median of 11.71)
GF Value™: $7.35 vs. price of $9.20 (25.2% above fair value)
Industry Position: 66.8% below the Retail - Cyclical median (#973 of 1117)
No single metric tells the full story. See the WOSGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watches of Switzerland Group PLC is a retailer of luxury watches and jewellerys in the United Kingdom. Other than luxury watch offerings, the company also offers luxury jewellery, fashion, and classic watches and a range of watch and jewellery aftercare services. The company's geographical segments are the United Kingdom and Europe, and the United States, of which the majority of the revenue comes from the United Kingdom and Europe segment.
85GF Score
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