3 July 2025

 

Watches of Switzerland Group PLC

FY25 Results

for the 52 weeks ended 27 April 2025

 

Record revenue driven by improved H2 trading performance

Continued excellent strategic and operational progress

 

 

Brian Duffy, Chief Executive Officer, said:

 

"During the year we grew revenue +8% to a record £1,652 million, delivering +16% growth in the US and +2% in the UK, whilst growing Adjusted EBIT¹ +12% to £150 million, all at constant currency and in line with market expectations.

 

"I am proud of the strong performance our team has delivered, underpinned by a significant trading improvement in H2 FY25 with Group revenue +12% vs prior year. Our US business has continued its excellent momentum, surpassing $1 billion revenue for the first time, bolstered by the acquisition of Roberto Coin Inc.. The UK has returned to growth as trading conditions have stabilised. Our performance reflects our differentiated business model, with our scale and leadership in our chosen markets, supported by long-standing, collaborative partnerships with world-leading brands across luxury watches and luxury branded jewellery underpinning sustained growth.

 

"FY25 was a busy year for the Group as we continued to deliver on our strategy at pace. A notable highlight was the opening of the new flagship Rolex boutique on Old Bond Street, London, which is a great example of how we combine our retailing excellence and operational expertise to deliver a fantastic project for our brand partners and clients. We also delivered three key Rolex projects in the US across Texas, Florida and Atlanta, opened a new Patek Philippe room in Connecticut, and executed a range of additional showroom openings, expansions and upgrades.

 

"We are increasingly excited about the possibilities for our recently acquired Roberto Coin business in North America. Not only has it continued to trade well since acquisition, we see growing potential for this well-recognised brand in the large and growing US luxury branded jewellery market. We are pleased to have launched a marketing campaign featuring Dakota Johnson as a global brand ambassador and expect this and other pipeline projects to underpin our growth ambitions for the brand, including the opening of three mono-brand boutiques.

 

"We are encouraged by the strong performance of the Rolex Certified Pre-Owned programme in both the UK and US, and by the sustained growth in our pre-owned business more generally. Building on our proven M&A track record, we were delighted to acquire Hodinkee, the leading global digital platform for luxury watch enthusiasts, further strengthening our online leadership.

 

"As we look ahead, whilst we are of course remaining mindful of the broader macroeconomic and consumer environment, including potential US tariff changes, we remain confident in the strength of our diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories."

 

 

£million	52 weeks ended 27 April 2025	52 weeks ended 28 April 2024	YoY change Reported rates	YoY change Constant currency1
Group revenue	1,652	1,538	+7%	+8%
US UK and Europe	786 866	692 846	+14% +2%	+16% +2%
Adjusted EBITDA1	192	179	+8%
Adjusted EBITDA margin1	11.6%	11.6%	-bps
Adjusted EBIT1	150	135	+11%	+12%
Adjusted EBIT margin1	9.1%	8.8%	+30bps
Adjusted EPS1 (p)	41.6	38.0	+9%
Operating profit	114	120	-5%
Statutory basic EPS (p)	22.8	25.0	-9%
Statutory profit before tax	76	92	-18%
Free cash flow1 Free cash flow conversion1	98 51%	118 66%	-17% -1,500bps
Return On Capital Employed1	19.0%	19.5%	-50bps
Net (debt)/cash1	(96)	1

 

FY25 Financial Highlights

 

·     Group revenue of £1,652 million, +8% vs FY24 year in constant currency (+7% reported), in line with market expectations

o   Improved second half performance with Group revenue +12% in H2 FY25 vs +4% in H1 FY25 vs prior year (constant currency)

o   Luxury watches² revenue +2% in constant currency, +1% reported

§ Demand for our key brands, particularly products on Registration of Interest lists, remains strong, outstripping supply in both the US and UK markets

§ Certified Pre-Owned and vintage is performing strongly, with Rolex Certified Pre-Owned becoming the Group's second largest luxury watch brand equivalent

o   Luxury jewellery³ revenue +108% in constant currency, +106% reported, driven by the acquisition of Roberto Coin Inc.

§ Luxury branded jewellery delivered double digit growth

·      US revenue of £786 million (including Roberto Coin Inc.), +16% at constant currency, +14% reported

o   Improvement to +19% in H2 FY25 vs +11% in H1 FY25 (constant currency), following a first half that was impacted by the Q1 increase of showroom stock levels of key brands to enhance displays and client experience

·      UK and Europe revenue of £866 million +2% vs prior year

o  Sequential revenue improvement H2 FY25 +6%

·      Excellent progress with showroom expansion and refurbishment programme

o   Expansionary capex⁴ of £73 million, with four new showrooms opened and 11 showrooms refurbished/expanded

·     Group Adjusted EBIT of £150 million, +12% in constant currency, +11% reported vs prior year

o   Improvement in adjusted EBIT margin to 9.1% (FY24: 8.8%)

·     Operating profit as reported on the face of the Consolidated Income Statement £114 million (FY24: £120 million), -5% on a reported basis

·     Free cash flow of £98 million (FY24: £118 million)

·     Net debt of £96 million as of 27 April 2025 (28 April 2024 net cash: £1 million), reflecting the acquisitions of Roberto Coin Inc. and Hodinkee business

·     On 10 March 2025, the Group launched a share buyback programme of £25 million, in line with our capital allocation policy. £11.3 million of shares were purchased and paid for in FY25, with completion of the programme in June 2025

 

Operating Highlights

 

·      Significant progress on key showroom projects:

o  Opened the new flagship Rolex boutique on Old Bond Street, London, which is trading ahead of our expectations

o  Opened a new 2,000 sq ft Patek Philippe room in Betteridge Greenwich, Connecticut

o  Introduction of Rolex to Watches of Switzerland Plano, Texas and Mayors Jacksonville, Florida

o  Conversion of Mayors Lenox, Atlanta to a Rolex boutique

o  Relocation of Mayors Tampa, Florida

o  Expansion of Betteridge Vail, Colorado

o  New Watches of Switzerland Ross Park, Pittsburgh

o  New Mappin & Webb, Edinburgh

o  Further six showroom projects in the UK

o  Completed the Audemars Piguet AP House, Manchester (opened 6 May 2025) operating as a joint venture

o  Progress made on the Mappin & Webb Luxury Jewellery Boutique, Manchester, opening in Autumn 2025

·     Integration of Roberto Coin Inc. progressing to plan. Positive feedback from the network of retail partners, with sell-in and sell-out data encouraging

o  Strong revenue growth from the Roberto Coin brand within the Group's US showrooms, particularly following the installation of elevated displays. Working on a shop-in-shop concept for retail partners

o  Actively negotiating new mono-brand boutiques in the US, with three leases signed to date

o  Plans to increase space in department stores and independent retailers

o  Website upgrade in progress

o  Launched marketing campaign in May 2025 with Dakota Johnson as global brand ambassador

·     Launch of the upgraded Watches of Switzerland US ecommerce website in May 2025, with Mayors and Betteridge sites to follow

·     Positive consumer response from new product lines introduced following Watches and Wonders in Geneva

·     Hodinkee integration is progressing in line with our expectations

·     Accredited as a Great Place To Work® employer in the UK and US, and Living Wage Employer in the UK

 

Outlook for FY26

 

As we enter FY26, we are mindful of the uncertain macroeconomic backdrop, geopolitical developments, potential US tariff changes, and their potential impact on consumer confidence. We remain confident in the strong fundamentals of the luxury watch category and our differentiated business model in the underdeveloped US market.  We also see significant opportunities in luxury branded jewellery, including our Roberto Coin Inc. growth initiatives.

 

We are focused on the delivery of our strategy and are encouraged by our strong pipeline of high-quality projects opening in FY26, across both the UK and US, including:

·      Mappin & Webb Luxury Jewellery boutique, Manchester

·      Audemars Piguet AP House, Manchester (opened 6 May 2025) operating as a joint venture

·      Northern Goldsmiths, Newcastle

·      New Watches of Switzerland Southdale, Minneapolis

·      Relocation of Mayors University Town Center, Florida

·      Expansions or relocations of a further six UK showrooms

 

Guidance:

Our Guidance for the 53 weeks of FY26 (pre-IFRS 16) is based on:

·     Current US tariff rate of 10% maintained beyond the 90 day pause

·     Currently announced margin changes from brand partners in response to the 10% tariffs remaining in place. As it stands today, the 10% tariff on imported goods from Switzerland has led some of our brand partners to put through mid-single digit price increases in the US, alongside reducing their authorised distribution network's margin percentage

·     Visibility of supply of key brands for calendar year 2025

·     No significant changes in tax burden

·     Guidance reflects confirmed showroom projects but excludes any uncommitted capital projects or acquisitions

 

Constant currency revenue growth	6% - 10%
Adjusted EBIT margin %	Flat to -100 bps vs prior year
Capital expenditure	£65 - £70 million

 

The Group is exposed to movements in the £/$ exchange rate when translating the results of its US operations into Sterling. The actual average exchange rate for FY25 was $1.28.

 

The outcome of US tariff developments remains uncertain.  We are in regular dialogue with our brand partners, but it is too early to comment on the potential sector impact of further changes. We will provide a further update as to the potential impact on FY26 guidance once the situation becomes clearer.

 

 

FY25 revenue performance by geography and category

 

	H1 FY25			H2 FY25
(£ million)	26 weeks to 27 Oct 2024	Reported YoY%	Constant currency YoY%	26 weeks to 27 April 2025	Reported YoY%	Constant currency YoY%
UK and Europe	430	-1%	-1%	436	+6%	+6%
US	355	+8%	+11%	431	+18%	+19%
Group Revenue	785	+3%	+4%	867	+12%	+12%

 

 

	FY25	FY24	FY25 vs FY24
(£ million)	52 weeks to 27 April 2025	52 weeks to 28 April 2024	Reported  YoY %	Constant currency YoY %
UK and Europe	866	846	+2%	+2%
US	786	692	+14%	+16%
Group Revenue	1,652	1,538	+7%	+8%

 

 

	FY25	FY24	FY25 v FY24
(£million)	52 weeks to 27 April 2025	52 weeks to 28 April 2024	Reported YoY %	Constant currency YoY%
Luxury watches	1,354	1,345	+1%	+2%
Luxury jewellery	211	102	+106%	+108%
Services/other	87	91	-4%	-3%
Group Revenue	1,652	1,538	+7%	+8%

 

 

Webcast and conference call

 

A webcast presentation and conference call for analysts and investors will be held at 9.00am (UK time) today to announce the FY25 results. To join the call, please use the following details:

 

Webcast link: https://brrmedia.news/WOSG_FY_25

Conference call dial-in: +44 (0) 33 0551 0200

Password: WOSG FY2025

 

Contacts

 

The Watches of Switzerland Group
Anders Romberg, CFO	+44 (0) 207 317 4600
Caroline Browne, Group Finance and Investor Relations Director	+44 (0) 116 281 7420
[email protected]
Headland
Lucy Legh / Rob Walker / Scarlett Hateley	+44 (0) 203 805 4822
[email protected]

 

 

About the Watches of Switzerland Group

 

The Watches of Switzerland Group is the UK's largest luxury watch retailer, operating in the UK and US comprising seven prestigious brands; Watches of Switzerland (UK and US), Mappin & Webb (UK), Goldsmiths (UK), Mayors (US), Betteridge (US), Analog:Shift (US) and Hodinkee (US), with a complementary jewellery offering. Since 8 May 2024, the Group has also owned the exclusive distribution rights for Roberto Coin in the US, Canada, Central America and the Caribbean.

 

As at 27 April 2025, the Watches of Switzerland Group had 208 showrooms across the UK, US and Europe including 94 dedicated mono-brand boutiques in partnership with Rolex, OMEGA, TAG Heuer, Breitling, TUDOR, Longines, Grand Seiko, Roberto Coin, BVLGARI and FOPE and has a leading presence in Heathrow Airport with representation in Terminals 2, 3, 4 and 5 as well as seven retail websites.

 

The Watches of Switzerland Group is proud to be the UK's largest retailer for Rolex, OMEGA, Cartier, TAG Heuer and Breitling watches.

www.thewosgroupplc.com

 

 

 

 

CEO Review

 

FY25 was a year of strong strategic and operational progress for the Group, which saw the US business continuing its strong momentum, and the UK returning to growth. Group revenue came in at £1,652 million, which is an increase of +8% on the prior year, with +16% in the US (including Roberto Coin Inc.) and +2% in the UK (all in constant currency). From a profitability perspective, we saw full year Adjusted EBIT improvement to £150 million, which was +12% (constant currency) year-on-year.

 

In the US, we experienced good growth, delivering +19% revenue growth in H2 FY25 (constant currency) following a first half that was impacted by the Q1 increase of showroom stock levels of key brands to enhance displays and client experience. The US now makes up 48% of Group revenue in FY25.

 

In the UK, we were pleased to see the external environment stabilise in line with our expectations, supporting revenue growth of +6% in H2 FY25. The UK performance continues to be driven by a domestic clientele with minimal return of tourist spending due to lack of VAT free shopping.

 

The luxury watch category is strong, resilient and offers long-term consistent growth. In recent years, the impact of the global pandemic has resulted in a period of unprecedented volatility. We believe the market has now normalised and secondary market prices have stabilised at above pandemic levels.

 

A highlight this year was the opening of the flagship Rolex boutique on Old Bond Street, London. Operating across four floors in circa 7,200 square feet, this boutique includes the first dedicated Rolex Certified Pre-Owned floor, as well as three floors dedicated to sales and hospitality, and an after-sales lounge home to six watchmakers and technicians. The performance of the Rolex boutique has exceeded expectations.

 

On 8 May 2024, we announced that the Group had acquired the exclusive distribution rights for the Roberto Coin brand in the US, Canada, Central America and the Caribbean, through the acquisition of Roberto Coin's US associated company, Roberto Coin Inc.. The brand is well-recognised within the growing US luxury jewellery market. Integration is progressing to plan, and we see enormous potential growing this iconic brand with existing customers and using our retail expertise to elevate and expand store presence. We have received positive feedback from the network of retail partners and distribution remains intact from the acquisition. FY25 saw good revenue growth from the Roberto Coin brand within the Group's US showrooms, particularly following the installation of elevated displays. Looking ahead to FY26, we are working on a shop-in-shop concept with retail partners and are actively negotiating new mono-brand boutiques in the US, with three leases signed to date. The Roberto Coin US website upgrade is in progress. May 2025 saw the launch of a new marketing campaign with Dakota Johnson as the global brand ambassador.

 

We are encouraged by the performance of the Rolex Certified Pre-Owned programme, which launched last year and continues to trade strongly, and the sustained growth in our overall pre-owned business. Rolex Certified Pre-Owned is available in all 21 of our US Rolex showrooms and 25 of our UK showrooms. Window displays are now in place and productivity is expected to increase as a result.

 

The luxury branded jewellery market continues to grow, particularly in the US, and remains a key part of our long-term strategy for growth. FY25 saw exclusive luxury branded jewellery launches in the UK and there will be further brands to follow in FY26 with the opening of the Mappin & Webb Luxury Jewellery boutique, Manchester, which will include a De Beers boutique - the first one outside of London.

 

On 3 October 2024, we acquired the editorial, insurance and limited-edition business from Hodinkee, the pre-eminent global digital editorial content provider and gateway for luxury watch enthusiasts, further strengthening our online sector leadership. Integration is progressing in line with our expectations, and it has been a pleasure working closely with Ben Clymer and his team. The upgrade for the new Watches of Switzerland US ecommerce website launched in May 2025, with Mayors, Betteridge and Roberto Coin sites to follow shortly.

 

Significant progress has been made on key showroom projects:

 

·      Opened the new flagship Rolex boutique on Old Bond Street, London, which is trading ahead of our expectations

·      Opening of new 2,000 sq ft Patek Philippe room in Betteridge, Greenwich, Connecticut

·      Relocation and introduction of Rolex and Cartier to Watches of Switzerland, Plano, Texas

·      Reintroduction of Rolex to Mayors, Jacksonville, Florida

·      Conversion of Mayors, Lenox, Atlanta to a Rolex boutique

·      Relocation of Mayors, Tampa, Florida

·      Expansion of Betteridge, Vail, Colorado

·      New Watches of Switzerland, Ross Park, Pittsburgh

·      New Mappin & Webb, Edinburgh

·      Expansion of Watches of Switzerland, Oxford Street, London

·      Relocations of Goldsmiths, Cheltenham and Milton Keynes

·      Conversion and expansion of Watches of Switzerland, Fenchurch Street, London from Mappin & Webb

·      Opened the Audemars Piguet AP House, Manchester (opened 6 May 2025) operating as a joint venture

·      Progress made on the Mappin & Webb Luxury Jewellery boutique, Manchester, opening in Autumn 2025

 

In April 2025, the Group announced the closure of a number of low profitability showrooms in the UK. The Group continually assesses its operations to remain as efficient and productive as possible.

 

The exit from Europe is now complete, which allows us to focus on higher returning markets. Three showrooms closed in the year and four sold to brand partners. The final two boutiques were sold to brand partners in June 2025.

 

Environmental, Social and Governance

 

We have continued to progress against our strategic pillars of People, Planet and Product throughout FY25. Highlights during the year include:

 

·     Great Place to Work-Certified™ in the UK and US

·     Met the recommendations of the FTSE Women Leaders Review and improved our ranking from #10 to #7 in the FTSE 250

·     Continued to comply with the UK Real Living Wage recommendations

·     Grew sales of pre-owned watches by +39% YoY and expanded our team of accredited watchmakers and technicians to support circularity, however missed our overall circularity target for the year

·     Transitioned to 100% renewable energy across our Group, through the purchase of renewable energy certificates, backed by guarantees of origin

·     GHG location-based emissions increased by 11% vs prior year due to business growth and therefore we did not meet our climate target in the year.  We remain determined to reach net-zero by 2050 and are pleased to report an 86% reduction in our market-based operational emissions

·     Mappin & Webb named as CSR Jewellery Retailer of the Year for the second year running in the 2024 Professional Jeweller Awards

·     £8.3 million committed by the Group to The Watches of Switzerland Group Foundation since launch, providing essential support to local charities focusing on poverty, the advancement of education and relief to those in need

·     Headline sponsor for The King's Trust Change a Girl's Life campaign and biggest fundraiser in the Trust's Future Steps initiative

·     Achieved Fair Tax Mark reaccreditation for second year running

 

Finally, the progress we have made over the year could not have been achieved without the continued hard work and dedication of our 3,000+ colleagues at the Watches of Switzerland Group. I would like to personally thank them for their contribution.

 

 

Financial Review

 

The Group's Consolidated Income Statement is shown below which is presented including IFRS 16 'Leases' and includes exceptional items.

 

Income Statement - post-IFRS 16 and exceptional items (£million)	52 weeks ended 27 April 2025	52 weeks ended 28 April 2024	YoY variance
Revenue	1,651.5	1,537.9	7%
Operating profit	113.9	120.0	(5)%
Net finance cost	(38.0)	(27.9)	(36)%
Profit before taxation	75.9	92.1	(18)%
Taxation	(22.1)	(33.0)	33%
Profit for the financial period	53.8	59.1	(9)%
Basic earnings per share	22.8p	25.0p	(9)%

Management monitors and assesses the business performance on a pre-IFRS 16 and exceptional items basis, which is shown below. This aligns to the reporting used to inform business decisions, investment appraisals, incentive schemes and debt covenants. A full reconciliation between the pre- and post-IFRS 16 results is shown in the Glossary.

 

Income Statement - pre-IFRS 16 and exceptional items (£million)	52 weeks ended 27 April 2025	52 weeks ended 28 April 2024	YoY variance
Revenue	1,651.5	1,537.9	7%
Net margin1	598.6	562.2	6%
Showroom costs	(292.7)	(289.1)	(1)%
4-Wall EBITDA1	305.9	273.1	12%
Overheads	(106.5)	(85.3)	(25)%
EBITDA1	199.4	187.8	6%
Showroom opening and closing costs	(6.9)	(8.9)	22%
Share of loss of joint venture and associates	(0.2)	-	-
Adjusted EBITDA	192.3	178.9	8%
Depreciation, amortisation and loss on disposal of fixed assets	(42.6)	(44.2)	4%
Adjusted EBIT (Segment profit)	149.7	134.7	11%
Net finance costs	(13.6)	(5.8)	(138)%
Adjusted profit before taxation	136.1	128.9	6%
Adjusted earnings per share1	41.6p	38.0p	9%

 

Revenue

 

Revenue by geography and category

52 weeks ended 27 April 2025 (£million)	UK and Europe	US	Total	Mix
Luxury watches	729.5	624.0	1,353.5	82%
Luxury jewellery	65.0	39.2	104.2	6%
Luxury jewellery wholesale	-	110.8	110.8	7%
Eliminations	-	(4.5)	(4.5)	-
Services/other	71.4	16.1	87.5	5%
Total revenue	865.9	785.6	1,651.5	100%

 

52 weeks ended 28 April 2024 (£million)	UK and Europe	US	Total	Mix
Luxury watches	709.4	635.3	1,344.7	87%
Luxury jewellery	62.1	40.3	102.4	7%
Services/other	74.6	16.2	90.8	6%
Total revenue	846.1	691.8	1,537.9	100%

 

Group revenue was up vs prior year at £1,651.5 million (+8% on a constant currency basis), with an improved second half performance at +12%.

 

Group revenue from luxury watches grew by +1% on the prior year. As anticipated, revenue was impacted by one-off increases in showroom inventory levels to enhance displays and client experience in Q1 FY25, particularly in the US, with stronger performance in the second half of the year. Demand for our key brands, particularly products on Registration of Interest lists, continues to be strong, with consistent additions and conversions.

 

We continue to be encouraged by the performance of our pre-owned business with Rolex Certified Pre-Owned now in 21 agencies in the US and 25 in the UK. Luxury Watches made up 82% of revenue versus 87% in the prior year, with the acquisition of Roberto Coin Inc. in the period contributing to a higher luxury jewellery mix.

 

Group luxury jewellery revenue, excluding wholesale, increased by 2% on the prior year, boosted by improved trends in the UK at +5%. US luxury jewellery sales continue to be impacted by market trends in the bridal category. The majority of luxury jewellery sold by the Group is retailed under our house brands of Goldsmiths, Mappin & Webb, Mayors and Betteridge. Our strategy is to grow our luxury branded jewellery offering, where we partner with other major luxury jewellery brands. Luxury branded jewellery sales continue to significantly outperform non-branded jewellery.

 

On 8 May 2024, the Group signed and completed the acquisition of the entire share capital of Roberto Coin Inc., the exclusive distributor of Roberto Coin in the US, Canada, Central America and the Caribbean. Wholesale revenue in the period was £110.8 million, in line with expectations. The business continues to work positively with retail partners post-acquisition.

 

Services/other revenue, consisting of servicing, repairs, insurance services and the sale of fashion and classic watches and other non-luxury jewellery, declined by 4%.

 

Group ecommerce⁵ sales declined by 5% compared to the prior year, impacted by the mix of products sold through this channel and performance of the UK market. We continue to be the market leader in ecommerce for luxury watches and jewellery in the UK and are growing our proposition in the US. On 3 October 2024, the Group completed the acquisition of the editorial, insurance and limited-edition businesses of Hodinkee, the pre-eminent global digital editorial content provider, to support our objectives to leverage sector leadership online.

 

US revenue increased by 16% year-on-year in constant currency (14% reported) and the US business made up 48% of the Group's revenue in FY25 (FY24: 45%). Revenue and EBIT growth was largely driven by the Roberto Coin Inc. acquisition.

 

During the year, the US opened two showrooms, a Rolex boutique in Lenox, Atlanta and a Cartier anchored Watches of Switzerland showroom at Ross Park, Pittsburgh. A further five showroom projects were completed in the year, including significant projects with Rolex and Patek Philippe.

 

UK and Europe revenue increased by 2% during the year, showing sequential improvement to +6% in H2 FY25. Sales in the UK were driven by a domestic clientele. Tourist sales continue to remain low, particularly on account of the removal of VAT free shopping for tourists. We have seen a continued stabilisation of the UK market in both luxury watches and jewellery, following a period of volatile conditions in the prior financial year.

 

During the year, we opened one mono-brand boutique in the UK, and a further multi-brand Mappin & Webb showroom in Edinburgh. 14 UK non-core showrooms were closed, allowing us to consolidate our portfolio and drive productivity across our estate. A further ten showrooms will close in Q1 FY26.

 

In March the new Rolex flagship boutique on Old Bond Street opened and trading has exceeded expectations since opening. A further five projects were completed enhancing our existing estate to further elevate the partner brands we display in those showrooms and advance our client experience. Significant progress has been made on our exit from Europe. Three showrooms closed in the period and four sold to brand partners. The remaining two boutiques were sold to brand partners in early FY26.

 

Profitability

 

	Profitability as a % of revenue
Income Statement - pre-IFRS 16 and exceptional items (£million)	52 weeks ended 27 April 2025	52 weeks ended 28 April 2024	YoY variance
Net margin	36.3%	36.6%	(30)bps
Showroom costs	17.7%	18.8%	(110)bps
4-Wall EBITDA	18.5%	17.8%	70bps
Adjusted EBITDA	11.6%	11.6%	-bps
Adjusted EBIT	9.1%	8.8%	30bps

 

Net margin as a % of revenue was 36.3% in the year. This was 30bps lower than the prior year driven by product mix and higher promotional activity, partly offset by savings on the cost of Interest Free Credit from the reduction in average term time from removing the four-year offer.

 

Showroom costs increased by £3.6 million (1%) from the prior year, to £292.7 million. This reflects the opening of new showrooms, and the annualisation of prior year openings, including acquisitions and annual pay rises to colleagues. This was partly offset by efficiencies found within digital marketing investment which continues to maximise traffic and conversion versus cost.

 

Overheads increased by £21.2 million (25%) principally due to the acquisition of Roberto Coin Inc.. Remaining cost increases are due to IT investment to support future growth, annual pay rises to colleagues, along with the opening of our new US Support Centre in Florida. This was partly offset by strong cost control and efficiencies within marketing.

 

Showroom opening and closing costs include the cost of rent (pre-IFRS 16), rates and payroll prior to the opening or closing of showrooms, or during closures when refurbishments are taking place. This cost will vary annually depending on the scale of expansion in the year.

 

Exceptional items

 

Exceptional items are defined by the Group as those which are significant in magnitude or are linked to events which are expected to be infrequent in nature. The majority of the items below do not have a cash impact.

 

Exceptional items (£million)	52 weeks ended 27 April 2025	52 weeks ended 28 April 2024
Rolex Old Bond Street	4.2	2.5
Showroom impairment	44.5	21.2
Showroom closures	6.2	-
European showroom impairment	0.7	8.6
Business acquisitions	2.1	3.3
Reversal of inventory provision created on acquisition	-	(2.4)
Total exceptional items	57.7	33.2
Of which impacts:
Operating profit	55.5	31.9
Net finance costs	2.2	1.3

 

Rolex Old Bond Street

A new 7,200 sq ft showroom was built and opened during the year in partnership with Rolex. This new flagship is our largest Rolex showroom and reflects the importance of the London market and the special relevance of London to the history of Rolex. The cost shown here is the IFRS 16 depreciation and interest costs incurred whilst the showroom was being constructed. They are deemed to be exceptional in nature given that this unique proposition results in a project size and complexity significantly outside of a standard build, coupled with documented project delays outside of the Group's control. Costs shown are prior to the showroom opening on 14 March 2025.

 

Showroom impairment

The current macroeconomic environment, high interest rates and inflationary landscape gave rise to indicators of impairment in the current period. Consequently, discounted cash flows were performed on all Cash Generating Units (CGUs) with indicators of impairment. This resulted in a non-cash impairment charge of £43.6 million being recorded in the period. This is allocated over the right-of-use assets and the property, plant and equipment of those showrooms as required by IAS 36 'Impairment of Assets'. A further provision of £1.6 million relates to associated onerous contracts. A lease surrender gain of £0.7 million was also recognised in exceptionals, as the original write-off was presented in exceptionals in the prior year.

 

Showroom closures

In April 2025 the closure of a number of UK showrooms was announced as the Group continually assesses its operations to remain as efficient and productive as possible. The exceptional costs are reflective of asset write downs, other onerous costs and redundancy costs.

 

European showroom impairment

As announced during the prior year, the Group's intention has been to reallocate investment from Europe into the UK and US. During the year the Group has closed or transferred a further seven showrooms.

 

Business acquisition costs

Professional and legal expenses on business combinations have been expensed to the Consolidated Income Statement as an exceptional cost as they are regarded as non-trading, non-underlying costs and are considered to be material by nature. Similarly, the costs associated with the integration of Roberto Coin Inc., and the Hodinkee business have also been expensed as exceptional items.

 

Adjusted EBIT and operating profit

 

As a result of the items noted above, Adjusted EBIT was £149.7 million, an increase of £15.0 million, +11% on the prior year.

 

After accounting for exceptional costs of £55.5 million and IFRS 16 adjustments of £19.7 million, operating profit as presented on the face of the Consolidated Income Statement was £113.9 million, a decrease of 5% on the prior year.

 

Finance costs

 

Net finance costs (£million)	52 weeks ended 27 April 2025	52 weeks ended 28 April 2024
Pre-IFRS 16 net finance costs, excluding exceptionals	13.6	5.8
IFRS 16 interest on lease liabilities	22.2	20.8
Total net finance costs, excluding exceptionals	35.8	26.6

 

Interest payable on borrowings increased in the period, reflecting the new facilities drawn down to fund the Roberto Coin Inc. acquisition, together with the annualisation of borrowing to fund the acquisition of 15 showrooms from Ernest Jones in the prior year. The impact was a net increase in the pre-IFRS 16 interest charge of £7.8 million to £13.6 million. The IFRS 16 interest on lease liabilities increased by £1.4 million due to recent additions to the lease portfolio as we continue to invest in showroom portfolio expansion.

 

Details of a further £2.2 million of exceptional finance costs are given in note 4 of the Condensed Consolidated Financial Statements.

 

Taxation

 

The pre-IFRS 16 Effective Tax Rate (ETR) for the period before exceptional items was 27.8%. The statutory (post-IFRS 16 and including exceptionals) effective tax rate was 29.1%.

 

This is higher than the applicable UK corporation tax rate for the year of 25.0% as a result of higher chargeable taxes on US profits, the impact of expenses disallowed for corporation tax, and non-recognition of deferred taxes in Europe. The impact of the US rate differential is lower than the prior year impact due to the mix of revenue between states. The impact of the non-recognition of deferred taxes in Europe has also reduced year-on-year due to the lower activity in these countries following our announced exit from Europe.

 

Full detail can be found in note 5 within the Condensed Consolidated Financial Statements.

 

Balance Sheet

 

Balance Sheet (£million)	27 April 2025	28 April 2024
Goodwill and intangibles	304.1	215.7
Investment in joint venture and associates	0.5	-
Property, plant and equipment	192.4	191.4
Right-of-use assets	358.6	381.8
Inventories	447.4	393.3
Trade and other receivables	60.5	24.6
Trade and other payables	(259.5)	(216.5)
Lease liabilities	(454.6)	(460.4)
Net (debt)/cash	(96.2)	0.7
Other	(13.6)	(7.6)
Net assets	539.6	523.0

 

Goodwill and intangibles increased by £88.4 million as a result of the Roberto Coin Inc. and the Hodinkee business acquisitions in the year which gave rise to £98.1 million of goodwill and intangibles, offset by £1.1 million amortisation of brands and agency agreement, and a £9.8 million adverse exchange impact. The most significant intangible asset recognised on acquisition is £57.2 million for the supply agreement licence with Roberto Coin S.p.A. which is non-amortising as it extends into perpetuity. A further £3.6 million of computer software additions were made in the year as part of ongoing IT developments, offset by amortisation of £2.2 million and disposals of £0.2 million.

 

Property, plant and equipment increased by £1.0 million in the year. Additions of £69.0 million were offset by depreciation of £40.8 million, impairments of £19.7 million, and loss on disposal and foreign exchange movements of £7.5 million.

 

Including software costs, which are disclosed as intangibles, capital additions (including accruals) were £71.6 million in the year, of which £68.8 million was expansionary. Expansionary capex relates to new showrooms, relocations or major refurbishments (defined as costing over £0.25 million). In the year, the Group opened four new showrooms and refurbished 11 showrooms. Investment in our portfolio is paramount to our strategy and the Group follows a disciplined payback policy when making capital investment decisions.

 

Right-of-use assets decreased by £23.2 million in the year, to £358.6 million. Additions to the lease portfolio along with lease renewals or other lease changes were £69.5 million. This has been offset by depreciation of £56.5 million and impairments of £26.8 million. The remaining movement is a £9.4 million adverse foreign exchange impact.

 

Lease liabilities decreased by £5.8 million in the year. The portfolio changes noted above increased the lease liability by £61.6 million. Interest charged on the lease liability was £24.4 million and there was a £11.2 million favourable foreign exchange impact. Lease payments were £80.6 million, giving a final lease liability balance of £454.6 million.

 

Inventory levels increased by £54.1 million (14%) compared to the prior year. £53.9 million of inventory was acquired as part of the Roberto Coin Inc. acquisition, and the Group increased pre-owned watches and Rolex Certified Pre-Owned volume by £13.3 million. This has been offset through a reduction in underlying inventory to maintain stock turn at appropriate levels. The inventory obsolescence risk remains low for the Group.

 

Trade and other receivables increased by £35.9 million compared to FY24. Notable reasons for the increase being: £18.3 million of wholesale trade receivables under Roberto Coin Inc.; £8.8 million held in escrow in relation to business combinations (see note 9 of the Condensed Consolidated Financial Statements); investment into the joint venture; and invoices raised for Hodinkee advertising revenue at the period end. The balance also represents prepayments, rebate receivables, rent deposits and other ad hoc receivables such as property contributions.

 

Trade and other payables increased by £43.0 million. Notable reasons for the increase being: £10.9 million of trade payables and £18.2 million of other payables (including deposits taken and the sales return provision) under Roberto Coin Inc.; £8.8 million held in escrow; and £7.9 million of deferred consideration payable in relation to business combinations (see note 9 of the Condensed Consolidated Financial Statements).

 

Other includes taxation balances, defined benefit pension and capitalised finance costs.

 

Net cash/debt and financing

 

Net debt on 27 April 2025 was £96.2 million, an increase of £96.9 million since 28 April 2024. The strong free cash flow of £97.8 million being utilised for £72.6 million of expansionary capex, £106.9 million relating to the Roberto Coin Inc. and the Hodinkee business acquisitions and £11.3 million for the purchase of own shares as part of the share buyback programme.

 

Net debt post-IFRS 16 was £548.5 million. The value comprises the pre-IFRS 16 net debt of £96.2 million and the £454.6 million lease liability, offset by capitalised transaction costs of £2.3 million. The balance increased by £90.5 million (from £458.0 million) in the period, principally driven by the acquisition spend.

 

The Group's maximum amount available under its committed facility was £368.9 million at 27 April 2025.

 

Facilities held	Expiring	Amount (million)
Multicurrency revolving loan facility - UK SONIA +1.50% to +2.55%	May 2028	£275.0
Multicurrency term facility - UK SONIA +1.65% to +2.70%	May 2028	$125.0

 

On 13 December 2024, the Group refinanced and repaid its $115.0 million term loan facility which was originally taken out to finance the Roberto Coin Inc. acquisition with a new £150.0 million facility (comprising a £100.0 million term loan and an incremental £50.0 million revolving loan facility). The £100.0 million was drawn down on 13 December 2024 as $125.0 million and no further drawdown on the £100.0 million is permitted. The new facilities run coterminously with the existing UK bank facility of £225.0 million.

 

£195.1 million of these facilities were drawn down at 27 April 2025. Liquidity headroom (defined as unrestricted cash plus undrawn available facilities) was £253.5 million. Further detail with regards to covenant tests and liquidity headroom can be found in borrowings note 7 within the Condensed Consolidated Financial Statements.

 

Cash Flow

 

Cash flow (£million)	52 weeks ended 27 April 2025	52 weeks ended 28 April 2024
Adjusted EBITDA	192.3	178.9
Share-based payments	1.8	2.1
Share of loss of joint venture and associates	0.2	-
Working capital	(52.2)	(20.3)
Pension contributions	(0.7)	(0.7)
Tax	(29.7)	(33.5)
Cash generated from operating activities	111.7	126.5
Maintenance capex	(2.8)	(2.7)
Net interest	(11.1)	(6.2)
Free cash flow	97.8	117.6
Free cash flow conversion	51%	66%
Expansionary capex	(72.6)	(78.0)
Acquisitions	(106.9)	(44.2)
Investment in joint venture and associates	(0.7)	-
Purchase of own shares for employee incentive schemes	-	(7.2)
Share buyback	(11.3)	-
Refinancing costs	(1.5)	(2.2)
Disposal of European property, plant and equipment	2.7	-
Exceptional items - cash	(8.6)	(2.5)
Cash flow	(101.1)	(16.5)
Net proceeds/(repayment) of borrowings	85.7	(5.0)
Net decrease in cash and cash equivalents	(15.4)	(21.5)

 

Free cash flow decreased by £19.8 million to £97.8 million in the year to 27 April 2025 and free cash flow conversion was 51% compared to 66% in the prior year, primarily as a result of a higher working capital outflow in the period. This related to the timing of trade creditor payments and the change of payment terms from certain suppliers. Excluding the change in payment terms, free cash flow conversion would have been 71%.

 

Expansionary cash capex of £72.6 million was lower than the prior year due to a decrease in new showroom openings and refurbishments. In the year, the Group opened four new showrooms and refurbished 11 showrooms.

 

£11.3 million of shares were purchased and paid for in the period as part of the share buyback programme. The balance of the £25 million buyback programme was completed in June 2025.

 

Exceptional cash items of £8.6 million, includes Rolex Old Bond Street pre-opening rent, business acquisition and integration costs, and showroom exit costs as detailed in note 4 to the Condensed Consolidated Financial Statements.

 

Return on Capital Employed (ROCE)¹

 

	52 weeks ended 27 April 2025	52 weeks ended 28 April 2024
ROCE	19.0%	19.5%

 

FY25 ROCE is 19.0%, a decrease of 50bps in comparison to the prior year. Adjusted EBIT increased by 11% to £149.7 million, however Average Capital Employed during this period increased by 14% leading to the reduction.

 

Capital Allocation

 

The Group has a clear framework of capital allocation and is focused on optimising capital deployment for the benefit of all our stakeholders, with a focus on long-term sustainable growth in the business. It is also important for the Group to maintain financial and operational flexibility to be able to react tactically to opportunities, such as strategic acquisitions, at speed. Our capital allocation framework is as follows:

 

1.     Showroom investments - given the attractive returns from showroom investments, this is our key focus area to allocate capital to. In FY25 the Group spent £72.6 million in expansionary capex

2.     Strategic acquisitions - this is a key pillar of our growth strategy. Acquisitions must deliver return on investment in line with our disciplined financial criteria, within an appropriate timeframe. In FY25 the Group spent £106.9 million for the acquisitions of Roberto Coin Inc. and the Hodinkee business

3.     Returns to shareholders - in the event of surplus capital above and beyond the requirements of the business for investment into showrooms or strategic acquisitions, we would consider returns to shareholders either through ordinary dividends or share buybacks, with the appropriate mechanism to be decided at the appropriate time by the Board. On 10 March 2025, the Group launched a share buyback programme of £25 million. £11.3 million of shares were purchased and paid for in FY25, with completion of the programme in June 2025

 

Showroom Portfolio

 

As at 27 April 2025, the Group had 208 showrooms. The movement in showroom numbers is included below:

 

	UK multi-brand showrooms	UK mono-brand boutiques	Europe mono-brand boutiques	Total UK and Europe	US multi-brand showrooms	US mono-brand boutiques	Total US	Total Group
28 April 2024	99	59	9	167	25	31	56	223
Openings	1	1	0	2	1	1	2	4
Acquisitions	-	-	-	-	-	4	4	4
Closures	(11)	(3)	(7)	(21)	(1)	(1)	(2)	(23)
27 April 2025	89	57	2	148	25	35	60	208

Footnote references

¹ This is an Alternative Performance Measure and is shown on a pre-IFRS 16 basis. Refer to the Glossary for definition, purpose and reconciliation to statutory measures where relevant.

² Luxury watches are defined as those that have a Recommended Retail Price greater than £1,000.

³ Luxury jewellery is defined as those that have a Recommended Retail Price greater than £500.

⁴ Expansionary capex is defined as capital expenditure relating to new showrooms or offices, relocations or refurbishments greater than £250,000.

⁵Ecommerce sales are sales which are transacted online.

 

Certain financial data within this announcement has been rounded. Growth rates are calculated on unrounded numbers.

 

 

Principal and emerging risks and uncertainties

 

The Group is exposed to a number of risks and uncertainties in its business which could impact its ability to effectively execute its strategy and cause actual results to differ materially from expected and/or historical results. The Board has undertaken a robust assessment of the principal and emerging risks and uncertainties facing the Group, including those that would threaten its business model, future performance, solvency or liquidity. The risks presented in the 2024 Annual Report and Accounts, described as follows, remain unchanged: Business strategy execution and development; Key suppliers and supply chain; Client experience and market risks; Colleague talent and capability; Data protection and cyber security; Business interruption; Regulatory and compliance; Economic and political; Brand and reputational damage; Financial and treasury; and Climate change. These are detailed on pages 134 to 139 of the 2024 Annual Report, a copy of which is available on the Watches of Switzerland Group PLC (the 'Company') website at www.thewosgroupplc.com.

 

A full disclosure of the Group's principal risks and emerging risks and uncertainties, including the factors which mitigate them, will be set out within the Strategic Report of the 2025 Annual Report and Accounts.

 

Disclaimer

 

This announcement has been prepared by Watches of Switzerland Group PLC (the 'Company'). It includes statements that are, or may be deemed to be, "forward-looking statements". Forward-looking statements are statements based on the Company's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance, or events to differ materially from those expressed or implied in these statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "projects", "goal", "objectives", "outlook", "probably", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. They appear in a number of places throughout this announcement and the information incorporated by reference into this announcement and may include statements regarding the intentions, beliefs or current expectations of the Company, its Directors, or the Company and its subsidiaries (the 'Group') concerning, amongst other things: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies, the expansion and growth of the Group's business operations; and (iii) the effects of government regulation and industry changes on the business of the Company or the Group.

 

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in this announcement and/or the information incorporated by reference into this announcement.

 

Any forward-looking statements made by or on behalf of the Company or the Group speak only as of the date they are made and are based upon the knowledge and information available to the Directors on the date of this announcement, and are subject to risks relating to future events, other risks, uncertainties and assumptions relating to the Company's operations and growth strategy, and a number of factors that could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements. Undue reliance should not be placed on any forward-looking statements and, except as required by law or regulation, the Company undertakes no obligation to update these forward-looking statements as a result of new information, future events, or other information. No statement in this announcement should be construed as a profit forecast or profit estimate.

 

Before making any investment decision in relation to the Company you should specifically consider the factors identified in this document, in addition to the risk factors that may affect the Company or the Group's operations as detailed above.

 

 

 

 

Watches of Switzerland Group PLC

Preliminary results

For the 52 week period ended 27 April 2025

 

 

 

Registered number: 11838443

 

 

 

CONSOLIDATED INCOME STATEMENT FOR THE 52 WEEKS ENDED 27 APRIL 2025

 

 

 

Note		52 week period ended 27 April 2025 £m	52 week period ended 28 April 2024 £m
Revenue	2, 3	1,651.5	1,537.9
Cost of sales		(1,438.3)	(1,348.5)
Exceptional cost of sales	4	(2.0)	0.5
GROSS PROFIT		211.2	189.9
Administrative expenses		(43.6)	(37.5)
Exceptional impairment of assets	4	(46.5)	(26.2)
Exceptional other administrative expenses	4	(7.0)	(6.2)
Share of loss of joint venture and associates		(0.2)	-
OPERATING PROFIT		113.9	120.0
Finance costs		(38.1)	(29.5)
Finance income		2.3	2.9
Exceptional finance costs	4	(2.2)	(1.3)
NET FINANCE COST		(38.0)	(27.9)
Profit before taxation		75.9	92.1
Taxation	5	(22.1)	(33.0)
Profit for the financial period		53.8	59.1
EARNINGS PER SHARE
Basic	6	22.8p	25.0p
Diluted	6	22.7p	24.8p

The notes are an integral part of these Condensed Consolidated Financial Statements.