Swiss Watch (LON:WOSG), a retailer of FTSE 250, has risen to fifth or higher in stock after boosting its full-year outlook following an astoundingly strong period of demand.
The UK’s leading retailers of watches from Rolex, Cartier, Omega, Tag Heuer and Breitling said certain currency revenues will bounce back about 20% in the first 10 weeks of the second quarter.
The scale of unexpected demand growth has led the company to change its full-year guidance from £840 million to £860 million to £880 million to £910 million. This has caused an early rise in our shares by 24%.
The Swiss watches are making revenue from travelers by just over a third of the company’s sales, saying the third quarter proved challenging in both travel restrictions and retail.
However, the company is being boosted by a 50% increase in online sales in the second quarter. £145.1 million in addition to 12.6% sales growth in the UK sector. “Exceptionally strong” sales in the US sector increased 43.4% to £57.7 million.
Swiss compatible watch
Commenting on the optimistic update, the company’s CEO Brian Duffy said “the trading momentum improved further in the second quarter.”
“Higher than planned UK domestic sales have less tourist and airport traffic, while local stores continue to outperform London stores.”
“And the strong momentum that has been established in the US is accelerating even more.”
“Our guidance on fiscal year balance assumes that the positive trends experienced in the second quarter will be moderated by the effects of pandemic-related retail disruptions in the UK and US economy and uncertainties, and will have a major impact in the third quarter.”
Investor’s Notes
After relaxing for a while, the Swiss watch repeated 22.04% or 73.50p, sharing it to 407.00PA share 06/10/20 12:20 GMT.
The company currently has a 360p target price, a consensus “purchase” rating and a 55.56% “outperform” stance from the market beat community. Its P/E ratio is 20.46, below the average of 26.32 in the consumer circulation sector.
According to Greg Lawless of Shore Capital Analyst, Switzerland Update’s watches show that “demand for luxury watches continues to outperform supply.”
“In our view, this is a management team that successfully executes its strategy and adapts to unprecedented market conditions.”
