Position Decrease - Watches of Switzerland Group (WOSG)
I have reduced my position in Watches of Switzerland Group (WOSG) by 50%, effective at today's close (December 5th).
Four days after my brief review, Watches of Switzerland Group released its half-year earnings report today. While I have a neutral stance on the report itself, the market reaction was very positive, with the stock trading at around 568p—an impressive 14% gain just today. Since my review, the stock has rallied 22%, and with a 60% profit on my position, the company's expected value has shifted. As a result, I’ve decided to reduce its weighting in my portfolio. I still believe it’s a solid company, but its expected value now appears lower compared to other opportunities within my portfolio.
Here are my key takeaways from the earnings report:
Positive: FY25 guidance was reaffirmed.
Negative: Segment profit (Adjusted EBIT) declined.
Negative: Watch sales in the U.S. are decreasing, with U.S. revenue growth primarily driven by the acquisition of a jewelry company.
Let me know what you think?
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