Watches of Switzerland Group PLC (OTC:WOSGF) Surpasses Earnings Expectations
Financial Modeling Prep·2025-12-05 01:04

Core Insights - Watches of Switzerland Group PLC (WOSGF) is a leading luxury-watch retailer with a strong presence in the UK and US markets, focusing on high-end timepieces and exceptional customer service [1] Financial Performance - On December 4, 2025, WOSGF reported earnings per share of $0.25, exceeding the estimated $0.23, indicating strong financial performance [2] - For the first half of 2026, the company experienced a 10% increase in group revenue to £845 million, primarily driven by a 20% revenue growth in the US market, which accounted for nearly 60% of profitability [3] - Despite a decrease in EBIT margin to 8.1%, adjusted earnings before interest and taxes rose by 6% to £69 million, with strong free cash flow reported at £48 million, reflecting financial stability [4][6] Market Valuation Metrics - WOSGF has a price-to-earnings (P/E) ratio of approximately 20.85, a price-to-sales ratio of about 0.66, and an enterprise value to sales ratio of around 1.01, indicating its market valuation relative to earnings and sales [5] - The company's debt-to-equity ratio is approximately 1.20, suggesting balanced financial leverage, while a current ratio of around 1.95 indicates a strong ability to cover short-term liabilities [5]