Watches Of Switzerland H1 Earnings Rise; Backs FY22 View

Watches of Switzerland (WOSG), a British retailer of Swiss watches, posted a rise in its earnings for the first half, with a rise in revenue, driven by strong demand for luxury watches and jewelery items.

In addition, owing to a surge in revenues and positive market cues, the luxury retailer has reiterated its previous guidance for current fiscal.

For the six-month period ended in October, the Braunstone-based company posted a rise in profit before tax at 64.7 million pounds, compared with 36.2 million pounds, reported for the same period a year ago.

For the first half, adjusted earnings before interest and tax (EBIT) of the firm increased by 62.7 percent, to 67.5 million pounds, year-over-year basis. Also, operating profit moved up to 72.3 million pounds, from 45.6 million pounds.

For the 26-week period ended on October 31, adjusted EBITDA of watch retailer climbed sharply by 58.8 percent, to 82.8 million pounds.

Amidst higher demand for the company’s products and services, the Group revenue for the six-month period rose to 586.2 million pounds, from 414.3 million pounds, reported last year.

For the first half, the company generated revenues of 508.8 million pounds, 40.8 million pounds, and 36.6 million pounds, from luxury watches, luxury jewelry, and other sources, respectively, compared with revenues of 362.1 million pounds, 26.3 million pounds, and 25.9 million pounds, reported for the same period of last fiscal.

Following firm market cues, the company has reaffirmed its previous guidance issued for the current fiscal. For the fiscal 2022, the company still projects its revenue to be in the range of 1.15 billion pounds – 1.20 billion pounds. It also expects its EBITDA and adjusted EBITDA margin to be in the range of 1 percent – 1.5 percent.

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