Watches of Switzerland (AO) | Hold | Sales beat on US surge, UK rebound, FY27 margin guide ahead of street

研报英文原文证据摘录

Watches of Switzerland (AO) | Hold | Sales beat on US surge, UK rebound, FY27 margin guide ahead of street

Watches of Switzerland Hold | Target Price: 430p

Company description Management

The Watches of Switzerland Group is the world's second-biggest retailer of Rolex, Brian Duffy, CEO

the world's largest and best-known luxury watch brand. From its roots in the UK, Anders Romberg, CFO

the company is expanding into the US through M&A, as well as store expansion

and renovations, with the two markets now roughly the same size. It has an

extensive Rolex CPO (pre-owned) programme, contributing to growth. It Key shareholders

acquired the US distribution of Italian jewellery company Roberto Coin to reduce Free float 100.00%

its dependence on watches.

Investment case Valuation methodology

Over half of the group's retail sales come from Rolex, the world's We use a mix of valuation methodologies such as multiples

biggest luxury watch brand, where annual demand exceeds compared to peers and a DCF.

supply and there are waiting lists for products. We use different groups when looking at multiples, including UK

We believe that concerns Rolex will move to own retail following retailers, luxury retailers, watchmakers, and other luxury goods

its acquisition of Bucherer are fading but we are concerned groups.

about Rolex and other brands squeezing the margin for its We include a 25% discount in our DCF to reflect the risks

distributors in the US amid tariffs. associated with its reliance on Rolex.

We assume the US will slow from recent growth levels. Risks to our rating

Catalysts Rolex moves to own retail.

Watches of Switzerland Group issues trading updates on top of Any problems with suppliers leading to reduced product or

its H1 and FY results. reduced margin.