In the new interest rate world, Watches of Switzerland’s ambition is not being rewarded. The FTSE 250 group’s shares have more than halved over the past 18 months, in expectation that the Rolex seller would be hit by the same slowdown in demand as retailers operating downmarket.
The latest annual trading figures are an indication of why the company deserves more credit. Strip out acquisitions, and revenue rose by just over a quarter last year, as its expansion stateside and into Europe helped to push the top line forward. Adjusted margins were bumped higher, partly by greater scale, and pre-tax profit rose just over a fifth. A step up in cash generation pushed the retailer into a net cash position of £16 million.
Higher sales
