Watches of Switzerland to confirm regrouping after Rolex shock – Proactive Investors UK

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Watches of Switzerland Group PLC (LSE:WOSG) eased a lot of anxiety in May when it revealed full-year profits had slipped year-on-year as sales stagnated, but not by as much as feared.

Last year, major supplier Rolex bought a rival retailer in what was seen as a threat to specialist luxury watch sellers such as WoS, but other than a poor performance in the UK the tone in the statement was reasonably sanguine.

Deutsche Bank forecasts WoS will post pre-tax profits of £129m (cons £124m) or down 19% year-on-year.

The UK is the weak spot with profits of £62.1m predicted, a 37% yoy drop, while the US is tipped to be flat at £72.4m supported by greater space and product allocation.

WoS shares still are yet to recover from the Rolex shock but might start to if the numbers come in ahead of forecasts.

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