Despite US tariffs reaching 39% on Swiss imports, Watches of Switzerland increased both sales and profits. The company confirmed that high-end watch and jewellery demand remains strong. Half-year results show Swiss luxury watches continue performing well in the US, highlighting resilient interest in premium products.
The UK-listed retailer, the nation’s largest seller of Rolex, Omega, and Cartier watches, reported £845 million (€967 million) in revenue 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 grew to £69 million (€78.9 million), up 6% at constant currency. Statutory profit before tax jumped 50% to £61 million (€69.78 million).
Impact of US Tariffs on Swiss Imports
US authorities imposed a 39% tariff on Swiss goods from 7 August 2025, sharply increasing the cost of imported watches. Washington and Bern later reduced the rate to 15% in November. Although 15% remains historically high, the most expensive Swiss watches experienced year-on-year growth.
CEO Brian Duffy emphasized strong performance in the first half, with revenue up 10% at constant currency, solid profitability, and robust free cash flow. He highlighted that the US market drove results, with revenue climbing 20% at constant currency to £409 million (€467.8 million). The US contributed 48% of total revenue and 59% of adjusted EBIT, reflecting broad-based demand across brands and categories.
Luxury Watches Maintain Market Leadership
Watches of Switzerland implemented price rises in the US to counter tariffs, gold price increases, and exchange rate shifts, yet demand for core Swiss brands stayed strong. Luxury watches accounted for 84% of total revenue. Key Swiss brands consistently exceeded supply, supported by growing client Registration of Interest lists and expansion of the Rolex Certified Pre-Owned business in the US.
The results reveal the company’s heavy reliance on US consumers. UK and European revenue grew just 2% to £436 million (€498.87 million), while US growth remained broad across brands and price ranges, fueled by new boutiques, e-commerce expansion, and integration of US jewellery brand Roberto Coin.
Duffy reported that second-half trading started well. He affirmed the group remains well-positioned and confident entering the holiday season while staying aware of external economic and geopolitical risks. The company also provided strong guidance for the full year.
