Watches of Switzerland PLC is a UK based watch retailer with strong sales and a growing US customer base.

Watches of Switzerland PLC (LSE: "WOSG") is a British retailer of Swiss watches, with 16 stores in the United Kingdom. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Operations in the USA are showing good expansion with the stock rallying over 500% from the COVID lows.

From a financial aspect the stock is strong. Total market capitalisation is £2.51bn. The company's financial year runs around April-April. Looking at the most recent yearly report (APR19' - APR20') revenue was £905m with a profit after tax of £50m. The most recent Q1 trading statement showed even more impressive numbers and provided they can continue Minipip estimates revenue at £1.2bn with a profit after tax £71m for fiscal year APR20'-APR21'. Showing good growth of about 32%. If US sales pick up then it could be even better. Looking at the balance total cash on Hand is £76m with total assets amounting to £827m. This has fallen from the previous year (£852m). Total liabilities were £576m but like the assets, these have fallen from the previous year (£652M). Overall this is a good, the current L/A ratio is 69.6%, down from 76.5%. An overall improvement of 9%.

From a technical aspect the stock remains stock and elevated. RSI does read 78 on the weekly timeframe so consolidation/dips are possible but the overall trend of this stock us clearly up. Support sits a £9.57 followed by £9.12. Looking to the upside initial targets are £11 followed by £13 and then £17.

Overall Watches of Switzerland is a strong stock. The financials indicate another strong financial year is ahead with technicals also giving the same indication. Downside risk is present through a fundamental point. Swiss watches are usally expensive items and there are many retailers of these kinds of watches. If demand drops off through winter then sales could slow, causes volatility in the stock for the short term.