Despite US duties reaching 39% on Swiss goods, Watches of Switzerland increased both sales and profits. The company emphasized continued strong demand for high-end watches and jewellery.
Half-year results show Swiss luxury watch sales remain strong in the US, even with steep tariffs on imports. Watches of Switzerland Group highlighted resilient demand for premium products.
Financial Growth Amid Tariff Pressure
The UK-listed retailer, Britain’s largest seller of Rolex, Omega, and Cartier, reported group revenue of £845 million (€967mn) for the 26 weeks ending 26 October 2025. This represents a 10% rise at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax climbed to £69 million (€78.9mn), rising 6% at constant currency. Statutory profit before tax surged 50% to £61 million (€69.78mn).
The company achieved this performance despite the sharp US tariff increase earlier in the year, which raised the cost of Swiss-made watches. Washington imposed a 39% tariff on 7 August 2025, later reduced to 15% in November.
Even with the 15% rate, historically high tariffs did not reduce demand for expensive Swiss watches, which grew year-on-year.
US Market Drives Expansion
CEO Brian Duffy said the company “delivered a strong first half, with group revenue up 10% in constant currency, strong profitability, free cash flow, and return on capital employed.”
The US market performed exceptionally, with revenue rising 20% at constant currency to £409 million (€467.8mn). This accounted for 48% of group revenue and 59% of adjusted EBIT.
Duffy called the US “the key driver of our performance, with robust demand across brands and categories,” noting it now contributes nearly 60% of profitability.
Watches of Switzerland raised US prices to offset higher costs from tariffs, gold, and exchange rates, but core Swiss brand demand remained strong. Luxury watches formed the backbone, delivering 84% of revenue. Key Swiss brands continued to outpace supply, with growing Registration of Interest lists and expansion in Rolex Certified Pre-Owned offerings.
The results show how reliant Swiss watchmakers have become on US consumers. While UK and Europe revenue rose only 2% to £436 million (€498.87mn), the US delivered growth across brands and price ranges, supported by new boutiques, ecommerce investment, and the integration of jewellery brand Roberto Coin.
Duffy noted strong second-half trading and said the group feels “well placed” and “confident” for the holiday season. Management remains cautious about economic and geopolitical risks while maintaining strong full-year guidance.
