FMP

FMP

Watches of Switzerland Group PLC (OTC:WOSGF) Surpasses Earnings Expectations

  • Earnings per share of $0.25, beating estimates.
  • 10% increase in group revenue to £845 million, driven by strong US market performance.
  • Free cash flow reported at £48 million, indicating financial stability.

Watches of Switzerland Group PLC, trading under the symbol WOSGF on the OTC exchange, is a prominent luxury-watch retailer. The company specializes in selling high-end timepieces and jewelry, with a significant presence in both the UK and US markets. It competes with other luxury retailers, focusing on delivering premium products and exceptional customer service.

On December 4, 2025, WOSGF reported earnings per share of $0.25, surpassing the estimated $0.23. This positive earnings surprise reflects the company's strong financial performance. The revenue for the period was approximately $1.11 billion, aligning with the estimated revenue, showcasing the company's ability to meet market expectations.

The company's financial performance in the first half of 2026 was notably strong, driven by a 10% increase in group revenue to £845 million. This growth was primarily fueled by the US market, which accounted for nearly 60% of the company's profitability. Revenue in the US rose by 20% in constant currency to £409 million, offsetting more modest trading in the UK and Europe.

Despite a decrease in the EBIT margin to 8.1%, adjusted earnings before interest and taxes increased by 6% to £69 million. The company reported strong free cash flow of £48 million, reinforcing its financial stability. CEO Brian Duffy expressed satisfaction with the performance and highlighted the positive impact of the recent tariff reduction on Swiss imports in the US.

WOSGF's financial metrics provide further insights into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 20.85, indicating how the market values its earnings. Its price-to-sales ratio is about 0.66, and the enterprise value to sales ratio is around 1.01, reflecting its market value relative to sales and revenue. The debt-to-equity ratio of approximately 1.20 suggests a balanced financial leverage, while a current ratio of around 1.95 indicates a strong ability to cover short-term liabilities.