FX.co ★ Watches Of Switzerland Q4 Revenue Up, Sees Weak Adj. EBIT In FY24; Cautiously Optimistic About FY25

Watches of Switzerland Group Plc (WOSG.L, WOSGF) announced on Thursday that it saw an increase in revenues for the fourth quarter, although fiscal 2024 revenues remained flat.

For the year, the company projects its adjusted EBIT to be between £133 million and £136 million, a decline from last year's £165 million. For fiscal 2025, the company maintains a cautiously optimistic outlook.

In its fourth-quarter trading update, the company revealed that group revenue rose by 3 percent to £380 million, up from last year's £371 million. At constant currency, revenues saw a 4 percent increase.

Revenue from luxury watches climbed 3 percent at reported rates and 5 percent at constant currency, driven by exceptional performance in the US. US revenue surged 14 percent at constant currency to reach £190 million.

For fiscal 2024, group revenue stood at £1.538 billion, compared to £1.543 billion the previous year, reflecting a 2 percent rise at constant currency.

The company plans to announce its fiscal 2024 results on June 27.

Looking ahead to fiscal 2025, the company expresses cautious optimism following the challenging trading conditions of fiscal 2024. On an organic pre-IFRS 16 basis, revenue is projected to be between £1.67 billion and £1.73 billion, translating to a growth of 9 percent to 12 percent at constant currency.

On both IFRS 16 and pre-IFRS 16 bases, the adjusted EBIT margin is anticipated to expand by 0.2 percent to 0.6 percent from the prior year.

Watches of Switzerland remains committed to executing its Long Range Plan, with targets to more than double sales and Adjusted EBIT by the end of FY28.