UK's Watches of Switzerland falls 10% after profit margin warning

Watches of Switzerland

03/07/2025 09:48

** Shares of British luxury watch retailer Watches of Switzerland WOSG.L down as much as 10.2% at 378.4p
** Warns that fiscal 26 profit margins would be pressured as brand partners, which include Rolex, Cartier, and Patek Philippe,raise U.S. prices to counter tariffs

** Says some brand partners also reducing distribution network's margin percentage

** Says too early to comment on the potential sector impact from U.S. tariffs
** Sees 6% to 10% constant currency revenue growth for FY26, assuming the 10% US tariff remains after its 90-day pause on Switzerland vs 8% growth it logged in 2025
** As of Wednesday's close, stock down roughly 29% so far this year

 (Reporting by Subiksha S in Bengaluru)

 ((Subiksha.S@thomsonreuters.com))