olivLaw · European equity research
Watches of Switzerland Group PLC WOSG.L
United Kingdom · London Stock Exchange · ISIN GB00BJDQQ870 · Vertical: Listed companies from United Kingdom
Watches of Switzerland Group is a British retailer of luxury watches and jewellery, with showrooms in the United Kingdom and United States and an online business. In fiscal 2026 the group reported revenue of £1,828m and adjusted EBIT of £155m. Its relevance now lies in its growing US showroom network and in guidance for fiscal 2027 that targets an expansion of adjusted EBIT margin.
At the close of 05 Nov 2026, Watches of Switzerland Group PLC (WOSG.L) stock was 7.59 GBP (−2.00% on the day), with market capitalisation 1.8 bn GBP, P/E 17.8 on diluted EPS of 0.43 GBP over the last 12 months, beta 1.21, 52-week range 4.01–8.02 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 60.4
- strong (55–70)
- Bollinger (20, 2)
- 6.64 – 7.88
- in the upper half of the band · %B 0.76 · band width 17.1%
- SMA 50 / 200
- 6.95 / 6.25
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.20 / 0.17
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +13.4% | −0.6% | +14.0 pp | — |
| 3 months | +2.3% | −4.2% | +6.5 pp | — |
| 6 months | +37.0% | +4.3% | +32.7 pp | — |
| Year to date | +60.1% | +7.5% | +52.6 pp | — |
| 1 year | +94.6% | +9.9% | +84.7 pp | +5.8% |
| 3 years | +46.2% | +49.8% | −3.6 pp | +26.3% |
| 5 years | −32.8% | +42.8% | −75.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 12.0, median 13.9, max 15.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 1.5 bn | 1.7 bn | 1.8 bn |
| Revenue YoY | unavailable | +7.4% | +10.7% |
| Net income | 59.1 m | 53.8 m | 98.8 m |
| Net income YoY | unavailable | −9.0% | +83.6% |
| Diluted EPS | 0.25 | 0.23 | 0.43 |
| Diluted EPS YoY | unavailable | −8.5% | +87.7% |
| net % | 3.8% | 3.3% | 5.4% |
| Free cash flow | 109.7 m | 115.7 m | 185.3 m |
Balance sheet & financial health
Fiscal year 2026 · 03 May 2026
- Cash
- 65.1 m GBP
- Financial debt
- 120.5 m GBP
- Net debt
- 55.4 m GBP
- Equity
- 628.7 m GBP
- Total assets
- 1.5 bn GBP
- Debt / equity
- 0.19x
- Current ratio
- 1.91x
- ROE
- 16.9%
- ROA
- 6.7%
- FCF margin
- 10.1%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 1.5 bn | 1.7 bn | 1.8 bn | esef· 02 Sept 2026verified |
| Cost of revenue | 1.3 bn | 1.4 bn | 1.6 bn | esef· 02 Sept 2026verified |
| Gross profit | 189.9 m | 211.2 m | 237.2 m | esef· 02 Sept 2026verified |
| Operating income | 120.0 m | 113.9 m | 170.0 m | esef· 02 Sept 2026verified |
| Interest expense | 29.5 m | 38.1 m | 38.2 m | esef· 02 Sept 2026verified |
| Pre-tax income | 92.1 m | 75.9 m | 133.5 m | esef· 02 Sept 2026verified |
| Income tax | 33.0 m | 22.1 m | 34.5 m | esef· 02 Sept 2026verified |
| Net income | 59.1 m | 53.8 m | 98.8 m | esef· 02 Sept 2026verified |
| Diluted EPS | 0.25 | 0.23 | 0.43 | esef· 02 Sept 2026verified |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 115.7 m | 98.9 m | 65.1 m | esef· 02 Sept 2026verified |
| Receivables | 22.5 m | 56.0 m | 48.5 m | esef· 02 Sept 2026verified |
| Inventories | 393.3 m | 447.4 m | 458.1 m | esef· 02 Sept 2026verified |
| Current assets | 536.0 m | 610.9 m | 576.2 m | esef· 02 Sept 2026verified |
| Property, plant & equipment, net | 191.4 m | 192.4 m | 217.0 m | esef· 02 Sept 2026verified |
| Goodwill | 199.3 m | 231.2 m | 245.3 m | esef· 02 Sept 2026verified |
| Intangibles (excl. goodwill) | 16.4 m | 72.9 m | 74.4 m | esef· 02 Sept 2026verified |
| Total assets | 1.3 bn | 1.5 bn | 1.5 bn | esef· 02 Sept 2026verified |
| Long-term debt | 113.3 m | 192.8 m | 120.5 m | esef· 02 Sept 2026verified |
| Current liabilities | 274.3 m | 313.8 m | 301.2 m | esef· 02 Sept 2026verified |
| Total liabilities | 804.4 m | 936.0 m | 832.4 m | esef· 02 Sept 2026verified |
| Equity | 523.0 m | 539.6 m | 628.7 m | esef· 02 Sept 2026verified |
| Shares outstanding at year end | 236.4 m | 236.0 m | 231.9 m | esef· 02 Sept 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 191.3 m | 183.7 m | 253.6 m | esef· 02 Sept 2026verified |
| Capex | 81.6 m | 68.0 m | 68.3 m | esef· 02 Sept 2026verified |
| Free cash flow | 109.7 m ≈ | 115.7 m ≈ | 185.3 m ≈ | esef· 02 Sept 2026derived |
| Investing cash flow | -121.1 m | -178.0 m | -105.1 m | esef· 02 Sept 2026verified |
| Financing cash flow | -91.7 m | -21.1 m | -182.1 m | esef· 02 Sept 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 1.8 bn GBP
Key indicators
Coverage and freshness
Score by group
52% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 19.1% | 71 (vs peers) | 20% |
| Net margin · Quality | 5.4% | 40 (vs peers) | 12% |
| FCF conversion · Quality | 187.6% | 100 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.5x | 45 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 1.9x | 93 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 17.8x | 28 (vs peers) | 20% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 10.5% | 100 (on a fixed band) | 16% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet64/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality70/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation60/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
WATCHES OF SWITZERLAND GROUP PLC (WOSG.L). Latest full fiscal year: 2026; data up to 2026-05-03.
Figures computed from the financial statements: revenue 1.8 bn GBP in 2026; YoY growth 10.7%; net margin 5.4%; ROE 16.9%.
The estimated value range is 7.66–10.89 GBP per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 9.13 GBP, the price of 7.59 GBP leaves a potential of 20.3% (value / price − 1) and a margin of safety of 16.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 19.1%
- FCF conversion: 187.6%
- Current ratio: 1.9x
- FCF yield: 10.5%
- The price is below the estimated value range
What contradicts it
- P/E (TTM): 17.8x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| WOSG.LWatches Of Switzerland Group PLC | 1.8 bn | 17.8 | 16.9% | 5.4% | +10.7% | +58% / +16% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for WOSG.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 4.77 Total return -37% · Per year -37% | 8.40 Total return 11% · Per year 11% | 12.62 Total return 66% · Per year 66% |
| 3 years | 5.22 Total return -31% · Per year -12% | 10.29 Total return 36% · Per year 11% | 16.89 Total return 123% · Per year 31% |
| 5 years | 5.71 Total return -25% · Per year -6% | 12.61 Total return 66% · Per year 11% | 22.60 Total return 198% · Per year 24% |
- Exit P/E± 2.57
- Net margin± 1.80
- Annual revenue growth± 1.40
- Annual dilution± 0.15
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Watches of Switzerland Group is a British retailer of luxury watches and jewellery, with showrooms in the United Kingdom and United States and an online business. In fiscal 2026 the group reported revenue of £1,828m and adjusted EBIT of £155m 1. Its relevance now lies in its growing US showroom network and in guidance for fiscal 2027 that targets an expansion of adjusted EBIT margin.
SWOT
Strengths
- A well-invested showroom network and national scale in the UK, with a growing presence in the US.
- Long-standing relationships with the most prestigious luxury watch and jewellery brands.
- High return on capital employed and solid operating cash generation.
Weaknesses
- Dependence on a small number of partner brands that control distribution and product allocation.
- Exposure to showroom investment costs and relatively long payback periods.
- Vulnerability to currency movements, since US operations are translated into sterling.
Opportunities
- Growth in pre-owned watches and luxury jewellery, if current momentum is sustained.
- Expansion in the US through new showrooms and acquisitions.
- Development of digital channels and the Hodinkee editorial platform.
Threats
- Shifts in consumer sentiment or geopolitical tension that could reduce demand for luxury goods.
- Tighter climate and reporting rules that could raise compliance costs.
- Physical climate risks to supply chains and sites in areas exposed to hurricanes or flooding.
Risks
- Dependence on partner brandshigh
The group relies on relationships with manufacturers that control distribution, and changes in agreements could affect access to products.
- Currency exposuremedium
US operations are translated into sterling, and a currency move could affect reported results.
- Physical climate risksmedium
Hurricanes in Florida and other extreme weather events could disrupt logistics, deliveries and showrooms.
- Environmental and reporting regulationlow
New climate reporting obligations could raise compliance costs and reputational risk if environmental claims are not substantiated.
- Showroom investment cyclelow
Capex of £70m planned for fiscal 2027 could lead to delays or cost overruns if project execution does not follow plan.
Investment thesis
What would need to be true (bull case)
- Demand for the most sought-after luxury brands exceeds production, which could support long-term revenue, according to management.
- Guidance for fiscal 2027 points to growth and margin expansion, while the US showroom network is being modernised.
- Return on capital employed and operating cash generation remain strong, which could allow continued investment and shareholder returns.
What would break the thesis
- Dependence on a small number of partner brands could limit growth if distribution agreements change.
- Currency risk and volatility in luxury markets could affect results reported in sterling.
- Large showroom investments could fail to deliver expected returns if demand falls or costs rise.
What to watch
- Delivery of guided constant currency revenue growth and adjusted EBIT margin expansionfiscal 2027
- Completion of the showroom elevation programme in the US and UKfiscal 2027
- Development of demand for pre-owned watches and luxury jewellerynext annual report
- Impact of integrating Deutsch & Deutsch on the US networkfiscal 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The group builds its model on long-standing partnerships with luxury watch and jewellery brands, which it presents to clients through modern showrooms, online channels and Click & Collect 1. At 3 May 2026 it operated 191 showrooms, of which 126 were in the UK and 65 in the US 1. The company presents itself as a leading luxury watch retailer in both countries, emphasising client experience and expert colleagues as differentiators 1.
The model relies on showroom investment, with payback periods of two to three years for relocations and expansions and three to four years for flagship projects 1. Pre-owned watches have become the second-largest category, driven mainly by Rolex Certified Pre-Owned 1. Acquisitions such as Roberto Coin Inc., Hodinkee and a majority stake in Deutsch & Deutsch support the growth strategy 1.
Internal funding is described as strong: operating cash generated was £278m in fiscal 2026 and return on capital employed was 18.0% 1. The group returned £25m to shareholders through a share buyback completed in fiscal 2026, with surplus capital after investment requirements returned to shareholders as appropriate 1.
Segments
Luxury watches
Luxury watches are the group's core category, sold through showrooms and online in partnership with brands such as Rolex, Patek Philippe, Audemars Piguet, Omega, Cartier and TAG Heuer 1. The relationships are described as long-standing and built on joint demand forecasting, product launches and showroom projects 1.
Luxury jewellery
Luxury jewellery is a growth category, with the group's own brands Mappin & Webb, Goldsmiths, Mayors, Betteridge and Deutsch & Deutsch, alongside partner brands such as Roberto Coin, David Yurman, FOPE and Messika 1. Roberto Coin is described as delivering strong performance and greater visibility in North America 1.
Market context
The group estimates global retail sales of luxury watches at approximately £50.3 billion in calendar 2025 1. The luxury watch export market grew at a 25-year CAGR of 4.9% over 2000 to 2025, and management says demand for the most sought-after brands exceeds production 1. Pressures include post-pandemic volatility and the absence of VAT-free shopping for tourists in the UK 1.
Swiss watch exports to the US have grown significantly in recent years, while the UK has remained ahead of the global average 1. For fiscal 2027 the group guides to constant currency revenue growth of 5% to 10% and an adjusted EBIT margin expansion of 40 to 80 basis points 1.
Trends
- Demand exceeding supply for key brandstailwind
Management says demand for the most sought-after Swiss brands exceeds production levels, which could support prices and sales for the group if supply stays constrained 1.
- US showroom expansiontailwind
The group is investing in openings, relocations and expansions in the US, and 86% of its US showroom elevation programme was complete at 3 May 2026 1. Investment is justified by relatively short payback periods, although the pace depends on the availability of suitable locations 1.
- Absence of VAT-free shopping in the UKheadwind
The group says the lack of VAT-free shopping in the UK weighs on international tourist spend, with some demand directed to markets offering tax-free incentives 1.
- Market volatility and geopolitical tensionmixed
The company says it is closely monitoring the geopolitical environment and its effect on consumer sentiment, but has minimal direct exposure to the Middle East or tourist consumers 1. Effects on demand could emerge if uncertainty intensifies 1.
Competitive position
The market is shaped by selective distribution agreements between manufacturers and retailers, which limit access to the top brands for rivals 1. The company says it holds advantages through national scale in the UK, integrated stock systems and its US showroom network 1.
The source does not name competitors. It describes multi-channel distribution, showrooms and online sales as the forms of competition, without giving an explicit picture of rivals 1.
- Online and retail rivals not named in the source
The source names no specific competitors, so no tickers can be attributed.
- US multi-brand luxury retailers
The report mentions competition in the US without naming companies, and tickers cannot be confirmed from the sources.
- Luxury jewellery retailers
Jewellery is described as a dynamic category without naming competitors in the sources.
- Brand owners' own online channels
Partner brands manage distribution through selective agreements, which could create indirect competition in digital channels.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202602 Sept 2026
- Annual report 202521 Aug 2025
Sources
- [1] Annual report, fiscal year ended 2026-05-03 (ESEF) · SEC / Watches of Switzerland Group PLC · 03 May 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.