On Friday, Goldman Sachs (NYSE:GS) maintained a Buy rating on Watches of Switzerland (WOSG:LN), with a steadfast price target of £5.66. The endorsement comes after the company's fiscal year 2024 results, which were announced on June 27, met expectations. The luxury watch retailer reported an adjusted EBIT (pre IFRS 16) of £135 million, aligning with the forecast it had shared on May 16 and slightly surpassing the Goldman Sachs/Visible Alpha Consensus of £134 million.
The company's management has expressed a cautious yet optimistic stance for the fiscal year 2025, noting that while they are mindful of the trading environment, the demand for luxury watches continues to outstrip supply for certain brands. This trend has allowed Watches of Switzerland to increase its market share further.
Goldman Sachs has adjusted its model for Watches of Switzerland following the release of the FY24 results, taking into account the latest financial data and foreign exchange rates. The company's performance is indicative of its strong position in the luxury watch market, which seems to be resilient even amidst broader economic uncertainty.
The luxury watch retailer's robust results and the continued demand for high-end timepieces suggest a positive outlook for Watches of Switzerland. The company's ability to navigate the trading environment and capitalize on the strong market for luxury watches has been recognized by Goldman Sachs in their steady Buy rating and price target, reaffirming confidence in the retailer's future performance.
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