Watches Of Switzerland Group Plc · LSE:WOSG
Watches Of Switzerland — H1 2025 Earnings Presentation
38 slides from Watches Of Switzerland's earnings presentation, Dec 5, 2024
Slide 1: H1 FY25 Results
WATCHES OF SWITZERLAND GROUP PLC H1 FY25 Results December 2024 26 weeks ended 27 October 2024
Slide 2: Disclaimer
Disclaimer Cautionary note regarding forward-looking statements This presentation has been prepared by Watches of Switzerland Group PLC (the “Company”). It includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the us
Slide 3: Agenda
Agenda CEO Update Financial Review & Outlook Brian Duffy Anders Romberg Chief Executive Officer Chief Financial Officer Q&A 3 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 4: CEO Update
WATCHES OF SWITZERLAND GROUP PLC CEO Update Brian Duffy, Chief Executive Officer
Slide 5: Unique WOSG Model Delivers Financial and Operational Progress
Unique WOSG Model Delivers Financial and Operational Progress • H1 in line with expectations, Q2 return to growth in both markets • Differentiated WOS Group model continues to succeed • ROI list strong with good conversion • Integration of Roberto Coin Inc. progressing very well and sales are strong
Slide 6: WOSG US Share of Sales Growing, and Performance Led by Domestic Clientele
WOSG US Share of Sales Growing, and Performance Led by Domestic Clientele Revenue mix by market 24% FY19 45% FY25 H1 55% UK and Europe 76% US Revenue mix by customer segment 6% 33% FY19 FY25 H1 Domestic 67% Tourism/Airports 94% 6 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 7: Exceptional US Growth Since Inception
Exceptional US Growth Since Inception 20 Doors 23 Doors 23 Doors 32 Doors 40 Doors 47 Doors 56 Doors 60 Doors* +11% +36% Revenue $US (millions) +46% +38% 870 +18% 785 +101% 579 397 241 287 120 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25E • Mayors • First standalone • First Mayors • Mono-brand • 5 doors
Slide 8: Diversified, Robust and Flexible Business Model
Diversified, Robust and Flexible Business Model Well diversified product and brand mix 9% 6% 12% 10% 9% 11% FY19 FY25 H1 Top 8 Luxury Watch Brands Other Luxury Watch Brands 72% 71% Luxury Jewellery Other Top 8 Luxury Watch Brands 8 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 9: WOSG Continues to Have Broad Appeal
WOSG Continues to Have Broad Appeal Definition Category 1 Category 2 Category 3 Category 4 Type of client Special Occasion Enthusiast Ultra Enthusiasts Serious Collector Number of watches 7+ 1-2 3-4 5-6 owed across lifetime UK % client / sales 78% of clients 15% of clients 4% of clients 4% of client
Slide 10: Choice and Independence of Advice Make Multi-Brand a Preferred Format Choice
Choice and Independence of Advice Make Multi-Brand a Preferred Format Choice Merchandising Ecommerce Brand Partners Xenia and CRM When Purchasing a watch or jewellery item which retailer format Is independent watch brand expertise and advice important to do you prefer? you? 16% 30% 70% 84% Mono-Bran
Slide 11: Celebrating Our Watches of Switzerland Centenary with Exclusive Product
Celebrating Our Watches of Switzerland Centenary with Exclusive Product 11 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 12: Significant Opening Expansion and Investment with Key Partners
Significant Opening Expansion and Investment with Key Partners 12 12 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 13: Patek Philippe: Betteridge Greenwich Expansion Opened August 2024
Patek Philippe: Betteridge Greenwich Expansion Opened August 2024 Additional 2,200 sq ft Significant expansion agreed for both Rolex & Patek Philippe Further renovation in FY26 13 13 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 14: Audemars Piguet: Manchester Town House Opening April 2025
Audemars Piguet: Manchester Town House Opening April 2025 Opening April 2025 14 14 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 15: Rolex: Expanding Our Partnership with five Openings in H2 in the US
Rolex: Expanding Our Partnership with five Openings in H2 in the US Continued strength of partnership Mayors Tampa, Florida – Relocation Dec 24 Betteridge Vail, Colorado – Expansion Dec 24 Significant pipeline of projects Visibility on projects through Calendar 27 St Johns, Jacksonville – Relocation
Slide 16: Lenox, Atlanta – Conversion of Mayors into Rolex Boutique
Lenox, Atlanta – Conversion of Mayors into Rolex Boutique: Opening February 2025 Conversion of Mayors Multi- brand to Rolex Boutique 3,000 sq ft New Mayors showroom to open directly opposite 16 16 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 17: Rolex: Old Bond Street Opening in Spring 2025
Rolex: Old Bond Street Opening in Spring 2025 Completes March 25 Four floors of retailing space Dedicated Rolex Certified Pre-Owned area and aftersales service lounge 17 17 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 18: Expansion and Conversion to Watches of Switzerland Fenchurch Street
Expansion and Conversion to Watches of Switzerland Fenchurch Street: Opened November 2024 Now across two floors Large branded areas for Rolex, OMEGA, Breitling, Tudor, TAG Heuer & Zenith on the ground Complemented by extensive hospitality areas across both floors 18 18 The Watches of Switzerland Gro
Slide 19: Strong Growth in Rolex Certified Pre-Owned
Strong Growth in Rolex Certified Pre-Owned Means it Has Become Our Second Largest Luxury Watch Brand Rolex Certified Pre-Owned Certified Pre-Owned US: Launched July 2023: Online and now in 19 showrooms US: Analog:Shift – 16 showrooms UK: Launched Sept 2023: Online and now in 24 showrooms UK: WOSG CP
Slide 20: Multiple Growth Initiatives to Expand Luxury Branded Jewellery Offering
Multiple Growth Initiatives to Expand Luxury Branded Jewellery Offering Mappin & Webb Luxury Jewellery Boutique opens New/expanded portfolio of brand partnerships Roberto Coin Inc. acquisition and integration July 25 Expanded jewellery space in existing/refurbished Online growth showrooms 20 The Wat
Slide 21: Opportunity to Accelerate Roberto Coin Inc. Growth
Opportunity to Accelerate Roberto Coin Inc. Growth Good reaction from wholesale partners Actively negotiating mono-brand boutiques – expected to open first stores in FY26 Shop-in-shop design in Mayors showrooms – resulted in significant sales uplift Pursuing department store concession models Market
Slide 22: Roberto Coin – Case Study of In-store Presentation Elevation
Roberto Coin – Case Study of In-store Presentation Elevation From corner presentation to elevated shop in shop Sales per foot have increased Old New 22 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 23: Manchester Showroom a Significant Step Forward in Luxury Jewellery Strategy
Manchester Showroom a Significant Step Forward in Our Luxury Branded Jewellery Strategy Opening July 2025 23 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 24: Successful Launch of David Yurman in the UK
Successful Launch of David Yurman in the UK 24 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 25: Client Events Continue to be a Priority
Client Events Continue to be a Priority - Increase in Virtual Boutique Resources and Technology 25 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 26: Hodinkee Acquisition Enhances Opportunities to Engage with Luxury Watch Enthusiasts
Hodinkee Acquisition Enhances Opportunities to Engage with Luxury Watch Enthusiasts • Pre-eminent global digital editorial content provider for luxury watch enthusiasts • 22.2m annual unique website visitors • 1 million social media followers • Traffic directed to WOS online site • Limited edition w
Slide 27: Continue to Advance the ESG Agenda
Continue to Advance the ESG Agenda People Planet Community Ranked #10 in the FTSE 250 Women Leaders Review As of November 2024, the Group holds ISS Prime Rating and the top QualityScore of ‘1’ for Environment and Social. We also hold the top MSCI ESG Rating of AAA. The MSCI index is widely recognise
Slide 28: Financial Results & Outlook
WATCHES OF SWITZERLAND GROUP PLC Financial Results & Outlook Anders Romberg, Chief Financial Officer
Slide 29: Key Messages
Key Messages • H1 performance in line with expectations • H1 profitability impacted by Q1 stock build and deleverage of fixed costs • Improvement in trading in Q2 • Holiday season has started well • FY25 guidance unchanged 29 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 30: Sales on an Improving Trend in H1
Sales on an Improving Trend in H1 Actual Constant Currency Sales vs LY Q1 Q2 H1 Q1 Q2 H1 UK & Europe (4%) 2% (1%) (4%) 2% (1%) US (1%) 18% 8% (1%) 24% 11% Group (3%) 9% 3% (2%) 11% 4% 30 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 31: Income Statement Reflects Good Sequential Improvement in Q2
Income Statement Reflects Good Sequential Improvement in Q2 Income Statement Income Statement presented pre-IFRS 16 and pre-exceptional items H1 FY25 H1 FY24 YoY % (£million) Revenue +3% vs LY, +4% in constant currency with sequential Revenue 785 761 +3% improvement from Q1 to Q2 Net margin 284 280
Slide 32: Ongoing Balance Sheet Strength
Ongoing Balance Sheet Strength Balance Sheet (£million) H1 FY25 H1 FY24 YoY % Balance Sheet is presented on a post IFRS-16 basis Goodwill & intangibles 301 203 49% • £107m spent on acquisitions • Continued investment with £44m of expansionary capex PP&E 204 186 10% • Inventory levels +£77m (+19%) –
Slide 33: Cash Flow Reflects Strong Organic and Inorganic Investment
Cash Flow Reflects Strong Organic and Inorganic Investment Cash flow (£million) H1 FY25 H1 FY24 YoY % Adjusted EBITDA 87 94 (7%) Working capital (42) (8) Free cash flow of £28m Tax (12) (23) Other 3 1 • Adjusted EBITDA decreased by 7% Cash generated from operating 36 64 (45%) activities • Working ca
Slide 34: FY25 Guidance Unchanged
FY25 Guidance Unchanged FY25 guidance (pre-IFRS 16) FY25 guidance assumes: Revenue £1.67 - £1.73 billion Revenue growth at constant • Visibility of supply of key brands 9 - 12% currency • Reflects confirmed showrooms refurbishments, openings and closures +0.2 to +0.6 percentage points Adjusted EBIT
Slide 35: Summary
Summary • Markets have settled. Watches of Switzerland model working; gaining market share • Roberto Coin brand performing very well with exciting future growth opportunities • Pre-owned performing well and growing as planned • Q2 and November momentum; intake visibility; and impact of projects unde
Slide 36: Q&A
WATCHES OF SWITZERLAND GROUP PLC Q&A
Slide 37: Investor Relations Calendar
Investor Relations Calendar ANNOUNCEMENT TIMING Half Year Results 5 December 24 Holiday Trading Update 6 February 25 Full Year Results 3 July 25 AGM Trading Update September 25 37 The Watches of Switzerland Group H1 FY25 Results, December 2024
Slide 38: Glossary
Glossary Adjusted EBIT: Adjusted Earnings Before Interest and Tax is operating profit before exceptional items and IFRS-16 impact Adjusted EBIT margin: Adjusted EBIT divided by revenue Adjusted EBITDA: Adjusted Earnings Before Interest, Tax, Depreciation and Amortisation is shown before exceptional
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