Watches of Switzerland -Annual Update 2025

Behind the Numbers: Is Watches of Switzerland Still Worth Holding?

Jul 10, 2025

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Watches Of Switzerland US | Luxury Watches, Designer Swiss Watches for Sale

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The information provided in this blog is for informational purposes only and should not be considered as financial, investment, or professional advice. The valuations and analyses presented here are based on publicly available information and our interpretation of such data. By reading this blog, you agree to release us from any liability

Introduction

Watches of Switzerland reported its full-year results last week, and I have to admit, the numbers were disappointing.

The market responded with a roughly 10% drop in the share price, driven by three key factors:

First, weak performance in the U.S. Despite management’s attempts to downplay the issue, market participants quickly recognized that the U.S. business is under significant pressure.
Tariffs—while largely forgotten by capital markets—continue to weigh heavily on sentiment around WOSG.
Last, the company issued soft guidance, particularly around margins. Management expects EBIT margin to decline by up to 100 basis points, even as revenues are projected to grow between 6% and 10%. This suggests that retailers are feeling the squeeze, with Rolex likely absorbing some of their margin to mitigate the impact of tariffs.

📌”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” FY 2024 results webcast

In today’s analysis, we’ll review Watches of Switzerland’s full-year performance and evaluate whether the current valuation is justified.

Although this remains my top holding in the portfolio, I aim to provide a fully transparent and unbiased assessment.

If you missed the initial write-ups: