FTSE 250 movers: Watches of Switzerland in favour on Tapestry Capri buy

by | Aug 14, 2023

(Sharecast News) – Shares in Watches of Switzerland topped the FTSE 250 after analysts at Shore Capital Markets said the company could benefit from Tapestry’s acquisition of Capri.

The $8.5bn takeover of Capri, which owns Versace and Jimmy Choo, “establishes a fresh US luxury contender, strategically but also disproportionately exposed to aspirational customers in the US, in a move to challenge European dominance with a blend of affordability and American style” the broker said in a note.

“Despite concerns about weakened US consumer spending due to inflation, this deal taps into the entry-level luxury demandand its potential to benefit from inflation easing. Within this context, we see Watches of Switzerland well positioned to gain from sector trends (and) benefiting from robust US performance rooted in product appeal.”

“WOSG’s strong performance in the US, hinging more on product availability than just demand, underscores the retailer’s momentumand the aspirational nature of luxury timepieces.

ShoreCap rated WOSG as a ‘buy’ at 700p.

Contract-for-difference platform Plus500 on Monday reported a 43% in half-year profits as customer numbers fell amid weaker trading volumes and said it was starting a $60m share buyback.

Interim core profit rose came in at $174m compared with $305.3m a year earlier, although it was up 17% from the second half of last year when volatile markets drove trading volumes in the wake of Russia’s invasion of Ukraine. Group revenue fell 28% to $368.5m.

Customer income, a key measure of the group’s underlying performance, was up 2% to $304.3m.

Plus500 said it expected full-year revenue and earnings before interest, taxes, depreciation, and amortisation would be in line with current market expectations.

Market Movers

FTSE 250 (MCX) 18,769.73 -0.16%

FTSE 250 – Risers

Watches of Switzerland Group (WOSG) 736.00p 5.14%
TBC Bank Group (TBCG) 2,800.00p 4.24%
Auction Technology Group (ATG) 736.00p 3.23%
4Imprint Group (FOUR) 5,170.00p 2.58%
Plus500 Ltd (DI) (PLUS) 1,467.00p 2.45%
Wetherspoon (J.D.) (JDW) 674.50p 2.43%
North Atlantic Smaller Companies Inv Trust (NAS) 3,750.00p 2.18%
Vanquis Banking Group 20 (VANQ) 117.20p 2.09%
CLS Holdings (CLI) 128.40p 1.90%
Dr. Martens (DOCS) 155.20p 1.90%

FTSE 250 – Fallers

W.A.G Payment Solutions (WPS) 92.00p -4.17%
Ferrexpo (FXPO) 81.50p -4.12%
IP Group (IPO) 58.10p -3.18%
Capita (CPI) 20.26p -3.06%
Crest Nicholson Holdings (CRST) 201.80p -2.61%
Liontrust Asset Management (LIO) 631.50p -2.55%
Savills (SVS) 887.50p -2.43%
TI Fluid Systems (TIFS) 139.20p -2.25%
Telecom Plus (TEP) 1,638.00p -1.92%
Mobico Group (MCG) 81.95p -1.86%

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