Watches of Switzerland (WOSG) shares up on positive five-year projection

November 07, 2023 02:31 AM PST | By Invezz

Watches of Switzerland (WOSG) shares up on positive five-year projection — Image source: Invezz

Strong financial performance

The luxury retailer, which operates 16 stores in the United Kingdom, posted robust financial results.

In the most recent quarter, the company reported a revenue of £388.8 million GBP, marking a substantial 19.3% increase year-over-year.

Net income saw a healthy boost of 15.79%, reaching £28.6 million GBP, with diluted earnings per share (EPS) rising by 20% to £0.12. Furthermore, the net profit margin expanded to 7.36%, reflecting a 2.9% increase.

Watches of Switzerland’s five-year plan

Watches of Switzerland Group PLC is forging ahead with an ambitious five-year plan that aims to more than double its sales and profits by the 2028 fiscal year.

This long-term vision aligns with the company’s desire to strengthen its position in the luxury watch and jewellery market.

CEO Brian Duffy expressed confidence in the company’s ability to achieve this goal, emphasizing a renewed focus on the pre-owned market, particularly certified pre-owned Rolex watches. By 2028, Watches of Switzerland expects these pre-owned Rolex sales to account for 20% in the US and 10% in the UK of their Rolex sales.

Watches of Switzerland (WOSG) stock market reaction

The market’s enthusiastic response to the positive update is attributed to the fact that the report contained “no new negatives” following concerns earlier this year surrounding the takeover of retailer Bucherer by Rolex.

The company’s shares had suffered a 36% fall year-to-date, but the latest development has reignited confidence among investors. The update reaffirmed the company’s full-year sales and profit guidance for fiscal 2024, which adds to the positive sentiment surrounding the stock.

*WOSG stock price chart. Source: ProRealTime*

This surge in Watches of Switzerland (WOSG) share price demonstrates the profound impact a well-crafted long-term strategy and positive financial performance can have on investor confidence. It will be interesting to monitor how Watches of Switzerland continues to navigate the competitive landscape in the luxury retail sector and works towards its ambitious growth objectives in the years to come.

The post Watches of Switzerland (WOSG) shares up on positive five-year projection appeared first on Invezz

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