Despite US tariffs rising to 39% on Swiss imports, Watches of Switzerland achieved higher sales and profits. The company emphasized that luxury watch and jewelry demand remains strong.
Half-year results show Swiss high-end watch sales continue to thrive in the US, signaling resilient demand for premium products.
Strong Revenue and Profit Growth
The UK-listed retailer, Britain’s largest seller of Rolex, Omega, and Cartier, reported £845 million (€967 million) in revenue for the 26 weeks ending 26 October 2025. This represents a 10% increase at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax reached £69 million (€78.9 million), rising 6% at constant currency. Statutory profit before tax surged 50% to £61 million (€69.78 million).
This performance came despite steep US tariffs on Swiss imports, which raised costs for imported watches. Washington imposed a 39% tariff from 7 August 2025, later reduced to 15% in November.
Even with a 15% tariff, demand for expensive Swiss watches grew year-on-year. Chief executive Brian Duffy stated the company “delivered a strong first half, with group revenue up 10% in constant currency, good profitability, strong cash flow, and high return on capital employed.”
US Market Drives Growth
The US market led performance, with revenue rising 20% at constant currency to £409 million (€467.8 million), representing 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 the region now accounts for nearly 60% of profitability.
Watches of Switzerland raised prices in the US to offset tariffs, gold price fluctuations, and exchange rates, yet demand for core Swiss brands remained strong.
Luxury watches formed 84% of group revenue. The company said key Swiss brands “consistently exceed supply,” with growing client Registration of Interest lists and strong Rolex Certified Pre-Owned sales in the US.
The results highlight Swiss watchmakers’ reliance on US consumers. UK and European revenue rose only 2% to £436 million (€498.87 million), while the US experienced broad growth across brands and price points, supported by new boutiques, e-commerce expansion, and integration of US jewelry brand Roberto Coin.
Duffy added that second-half trading started well and the group felt “well placed” and confident heading into the holiday season, while remaining cautious of external economic and geopolitical conditions.
