Turning back the clock

研报英文原文证据摘录

Turning back the clock

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Watches of Switzerland

Reiterate Rating: BUY | PO: 830.00 GBp | Price: 749.50 GBp

Upward EPS cycle can continue – reiterate Buy 14 July 2026

Watches of Switzerland reported its FY26 results, with EBIT at £155m, +3% YoY, at the Equity

top-end of the range provided at 4Q trading update, see Like clockwork report. Group

maintained its FY27 guidance. Management notes that trading in the first 10 weeks of

Key Changesthe year has been encouraging, slightly ahead of expectations, partly supported by

timing of deliveries of supply-constrained brands, as good US momentum continues and (GBp) Previous Current

the UK market is improving. We now expect 9.2% cFX revenue growth for the year as we Price Obj. 600.00 830.00

believe WOSG can deliver double-digit 1H trends (consensus at +8%). We increase our 2026E EPS 43.13 45.27

FY27-29E EBIT estimates by 4-5% following a 2-3% increase in revenue expectations. 2027E EPS 50.40 53.39

WOSG is one of the two names in our coverage where we see upside to EPS next year. 2028E EPS 54.25 57.92

We increase our PO to 830p (from 600p previously) on higher estimates as we believe

that continued solid execution and rebuilding credibility with the market thanks to Daria Nasledysheva >>

Research Analyst

management conservatism can drive further re-rating. Reiterate Buy. MLI (UK)

+44 20 7996 1087

FY26 EBIT at the top-end of guided range daria.nasledysheva@bofa.com

Ashley Wallace >>

FY26 EBIT of £155m came inline with expectations and at the top end of the guided Research Analyst

range. 2H26 EBIT margin of 8.8% was -90bps YoY, and -50bps excluding Saks provision. Merrill Lynch (Australia)

+61 2 9226 5070

Therefore, 2H margin contraction was driven by a better-than-expected 40bps net ashley.d.wallace@bofa.com