![\"Image](\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/05\/fef31023f325042b4147e7fb1e14a0cc.jpeg\")
Image source: Getty Images <\/p>\n Image source: Getty Images <\/p>\n
Watches of Switzerland (LSE: WOSG) shares appear to be back on investors\u2019 must-have lists, up 55% over the past five years. That includes a sharp 15% jump Thursday (14 May), on the back of a trading update ahead of full-year results \u2014 due 14 July.<\/p>\n
We are still looking at a 13% fall over five years. And the share price is down more than 60% since those giddy heights around the end of 2022. But it did look like the stock had been getting a bit over-hyped at the time. And a growth stock\u2019s second wind can often be the real thing.<\/p>\n
So are we at the start of a sustainable long-term upwards spell now? Let\u2019s dig into this latest update.<\/p>\n
Full-year highlights <\/p>\n
\u201cFY26 marks another year of record revenue performance, up 13% in constant currency to \u00a31.8 billion, with growth accelerating across the business and strong underlying momentum as we continue to scale \u2026 The US continues to be the primary engine of growth, with revenue up 24% in constant currency to $1.24 billion and now accounts for over half of group sales.\u201d<\/p>\n
\u2014 Brian Duffy, Watches of Switzerland CEO<\/p>\n
Full-year revenue rose 13% to \u00a31,828m, at constant currency \u2014 or 11% at actual exchange rates. Luxury watch revenue gained 13%, with luxury jewellery revenue up 18% \u2014 both at constant currency.<\/p>\n
Management expects full-year adjusted EBIT in the range of \u00a3152m to \u00a3155m, and that\u2019s better than earlier guidance.<\/p>\n
Net debt at the end of the year came in at \u00a357m, which is a fair bit lower than the \u00a396m at the end of the previous year. But that does move the company from a marginal net cash position two years ago, after the acquisition of Roberto Coin and Hodinkee in fiscal 2025 and Deutsch & Deutsch this year.<\/p>\n
Expansion, especially funded by debt, can need an eye kept on it. But these are relatively small debts for a company with a \u00a31.4bn market cap. So I\u2019m not really concerned right now.<\/p>\n
Should investors consider buying? <\/p>\n
Higher gold prices have been inflating costs in the luxury products market, and that\u2019s been squeezing margins over the past couple of years. The company, however, does expect a rise in adjusted EBIT margin in the 2026-27 year of 40-80 basis points.<\/p>\n
But we really do need to keep an eye on cost pressures \u2014 especially considering the importance of the US market, and the somewhat erratic US tariff outlook.<\/p>\n
The big question for me is whether the current valuation allows sufficient safety room to cover current uncertainties.<\/p>\n
Forecasts put the price-to-earnings ratio at 15 (adjusted for the latest share price jump). And that would drop to 11.8 based on expectations out to 2028.<\/p>\n
Discretionary spending <\/p>\n
We need to keep in mind that spending on luxury goods can be fickle. And any lengthy new spell of inflation could lead to weaker demand.<\/p>\n
Still, when geopolitical turmoil finally subsides, today\u2019s valuation could turn out to be a bargain. This really could be a pivot point for Watches of Switzerland shares. And I suspect growth investors with a bit of risk appetite could do well to consider this one.<\/p>\n
The post Here\u2019s why Watches of Switzerland shares just jumped 15%!<\/a> appeared first on The Twelfth Magpie<\/a>.<\/p>\n More reading<\/p>\n Alan Oscroft<\/a> has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.<\/a><\/p>\n Motley Fool UK 2026<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images Watches of Switzerland (LSE: WOSG) shares appear to be back on investors\u2019 must-have lists,…\n","protected":false},"author":2,"featured_media":65283,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[2047,35548,17,19369],"class_list":{"0":"post-65282","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-switzerland","8":"tag-exchange-rates","9":"tag-roberto-coin","10":"tag-switzerland","11":"tag-watches-of-switzerland"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116573118460204196","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/65282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=65282"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/65282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/65283"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=65282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=65282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=65282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}