closing tag is in template navbar
timefactors watches



TZ-UK Fundraiser
Results 1 to 15 of 15

Thread: Profits soar at WOS in first results since float

  1. #1
    Apprentice
    Join Date
    Jun 2019
    Location
    Chelmsford
    Posts
    54

    Profits soar at WOS in first results since float

    There have been several threads lately on the situation with ADís particularly the lack of supply of Rolex sports models and resulting grey prices. So I thought this was quiet a topical article on the telegraph today.

    ďBritainís biggest seller of Rolex and Cartier watches trebled profits in its maiden results as customers remain unfazed by Brexit blues.**

    Watches of Switzerland, which listed on the London Stock Exchange less than two months ago, has 128 stores, including Goldsmiths, Mappin & Webb and Mayors*in Britain and the US.*

    Pre-tax profits jumped 180pc to £20m for the year to July 17, while revenues increased from £631m to £773m. Like-for-like sales in the UK rose 10pc.*ď



    Sent from my iPhone using Tapatalk

  2. #2
    Craftsman
    Join Date
    Sep 2018
    Location
    Southampton
    Posts
    427
    I imagine rolex sports models are a relatively small proportion of their business so doubt it impacts them too much. It is still impressive growth nonetheless.

  3. #3
    Apprentice
    Join Date
    Jun 2019
    Location
    Chelmsford
    Posts
    54
    Iím not sure how there sales break down by brand but they are clearly selling lots of watches and benefitting from the demand in luxury watches.


    Sent from my iPhone using Tapatalk

  4. #4
    Master wileeeeeey's Avatar
    Join Date
    Jan 2017
    Location
    United Kingdom
    Posts
    2,034
    It's all those people buying two tone date justs at full price and every other brand under the sun to be put on the magical list for a GMT or Daytona.

    Oh, and tax free from tourism helps too

  5. #5
    Master
    Join Date
    Jan 2016
    Location
    Sussex, UK
    Posts
    4,352
    It’s a pre-tax profit of less than three-per-cent of turnover. Surprisingly small real margins.
    Last edited by paskinner; 17th July 2019 at 15:19.

  6. #6
    Master
    Join Date
    Aug 2015
    Location
    London
    Posts
    4,817
    Quote Originally Posted by paskinner View Post
    Itís a pre-tax profit of less than three-per-cent of turnover. Surprisingly small real margins.
    Their gross margins are nearly 40%. They have high store costs and have been opening expensive new stores, but expect store costs to fall in the future. In addition previously their debt financing was expensive but they have moved to reduce the cost of that.

    Their adjusted EBITDA of £69m/17.6% doesnít look bad. Basically if the market holds up for the next few years and they maintain tight operational control, they seem quite well set to me anyway. Someone who understands Retail properly may have a more informed view.

    A greater proportion of their sales are luxury watches as well, and they are moving more into digital. They have also spent less on sales incentives (presumably that means less room for discounts/freebies).

  7. #7
    Big company selling expensive baubles profit shock!


    Or maybe not?

  8. #8
    Master
    Join Date
    Jun 2006
    Location
    Petersfield, Hampshire
    Posts
    5,235
    Quote Originally Posted by alfat33 View Post
    ...and they are moving more into digital...
    Really, G-Shocks at WoS?

  9. #9
    Master
    Join Date
    Mar 2016
    Location
    Glasgow
    Posts
    3,932
    Quote Originally Posted by paskinner View Post
    Itís a pre-tax profit of less than three-per-cent of turnover. Surprisingly small real margins.
    Yep, and this is why there'll be no shops in 15 years time.

    Sent from my CLT-L09 using Tapatalk

  10. #10
    Master
    Join Date
    Apr 2015
    Location
    Devon
    Posts
    3,010
    Donít think Iíd want to be a shareholder on those figures - very small margins if (when) thereís a downturn in that market.

  11. #11
    Craftsman
    Join Date
    Jan 2018
    Location
    Jockland
    Posts
    399

    Weak pound.

    Quote Originally Posted by Devonian View Post
    Donít think Iíd want to be a shareholder on those figures - very small margins if (when) thereís a downturn in that market.

    Weak pound£ is probably the sole underlying factor in this growth, with I would expect the rising sales driven by tourists.

    When the manufacturers readjustment of RRP to counter the currency fluctuations happens post Brexit or sooner if the value of the pound keeps diving, then those big profits headlines may be a distant memory.

  12. #12
    Craftsman
    Join Date
    May 2018
    Location
    Maidstone
    Posts
    478
    Looks like my new DJ made ALL the difference, bubbly at the shareholder's meeting!

  13. #13
    Master
    Join Date
    Apr 2015
    Location
    Devon
    Posts
    3,010
    Quote Originally Posted by Flasher View Post
    Weak pound£ is probably the sole underlying factor in this growth, with I would expect the rising sales driven by tourists.
    Thatís even worse really because if and when the £ does strengthen against the $ then the profits from Mayors (they own the huge AD in Wynn too) will decrease. Just seems a very tight margin to me.

  14. #14
    Master
    Join Date
    Aug 2015
    Location
    London
    Posts
    4,817
    Quote Originally Posted by Jeremy67 View Post
    Really, G-Shocks at WoS?

  15. #15
    Journeyman
    Join Date
    Jan 2017
    Location
    Glasgow
    Posts
    124
    The flagship store at Regents Street is a place of wonder, three floors, every brand except AP as they can only have one and PP got it!


    Sent from my iPhone using Tapatalk

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •