Gatemore calls for Swiss watches to leave London for the US

Activist investor calls for FTSE 250 Watches of Switzerland Group to leave London to list on a US exchange.

Gatemore Capital Management said on Tuesday that WOSG must “fully unlock the value of its shares” by moving its primary listing from the United Kingdom to the United States, where it would benefit from “access to deeper capital pools,” higher valuations and “significantly higher liquidity.” elderly”. ‘.

WOSG, the UK’s leading luxury watch retailer, has seen its shares come under pressure as demand for high-end consumer goods in Asia and Europe has shown increasing weakness.

Gatemore, which is not one of WOSG’s top ten shareholders, last month asked the group to institute a bumper buyback package in an effort to boost its “weak” share price.

WOSG has a portfolio of over 220 physical showrooms and an expanding online presence, and has been making efforts to grow in the lucrative US market.

“We expect WOSG to generate the majority of its future revenue in the US market,” Gatemore said. “Now is the time for this listing change.”

If WOSG goes ahead with Gatmore’s suggestion, it would deal another blow to London markets, with the FTSE 250 having lost companies such as DS Smith, Spirent Communications and Wincanton to foreign acquisitions in recent times.

WOSG shares They are down 35 per cent since the start of 2024 to 439.52 pence, reflecting a significant drop in luxury demand this year.

The stock has still added 42.7 percent since its May 2019 listing, but remains about 70 percent below its December 2021 peak.

A research note published by Peel Hunt earlier this month downgraded WOSG’s 2025 profit expectations, noting that UK trading this financial year has “not been stellar” after a “difficult” 2024.

Its business in the United States, where the group has strived to grow, has been slowed by product availability issues.

Peel Hunt currently has a WOSG price target of just 400p, around 9 per cent of its current value.

Liad Meidar, Managing Partner of Gatemore, said: ‘Watches of Switzerland has established itself as the leading retailer of premium watches.

‘It is an exceptional business, providing customers with a premium experience and having long-standing partnerships with some of the world’s strongest brands.

‘With a clear leadership position in the UK market, the company is now well positioned to unlock additional growth in the huge and underpenetrated US market.

“We are impressed with the track record and ambition of the management team, and ask them to consider listing in the US to realize the potential of WOSG and help unlock the intrinsic value of this business.”

WOSG has not responded to a request for comment.

Earlier this year, Gatemore had FTSE 250 chemicals company Elementis in its sights, calling for a leadership shake-out amid what it called “self-inflicted management failures” and frustration over the company’s share price performance. chemical products company.