Watches of Switzerland reported higher sales and profits despite US tariffs of up to 39% on Swiss imports. The company confirmed that demand for luxury watches and jewellery remains strong.
Half-year results show Swiss luxury watch sales remain resilient in the US, highlighting consistent high-end consumer interest.
The UK-listed retailer, the largest seller of Rolex, Omega, and Cartier watches, recorded £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.
Profit Growth Amid Tariff Challenges
Adjusted earnings before interest and tax reached £69 million (€78.9 million), increasing 6% at constant currency. Statutory profit before tax surged 50% to £61 million (€69.78 million).
These results occurred despite steep US tariffs on Swiss imports, which raised the cost of imported watches. A 39% tariff began on 7 August 2025, before Washington and Bern reduced it to 15% in November.
Even with a 15% tariff, demand for premium Swiss watches increased compared to last year.
Chief executive Brian Duffy reported, “We delivered a strong first half, with 10% revenue growth in constant currency, good profitability, strong cash flow, and high return on capital.”
Revenue in the US rose 20% at constant currency to £409 million (€467.8 million), representing 48% of group revenue and 59% of adjusted EBIT.
Duffy emphasized that the US drove overall performance, noting robust demand across all brands and categories. The region now contributes nearly 60% of profitability.
Luxury Watches Remain Core Business
Brands raised US prices to offset higher tariffs, gold costs, and exchange rate fluctuations, yet core Swiss brands continued to sell strongly.
Luxury watches accounted for 84% of group revenue, with demand consistently exceeding supply. The company added clients to its Registration of Interest lists and saw strong growth in Rolex Certified Pre-Owned watches in the US.
The results also show Swiss watchmakers’ increasing reliance on the US market. UK and Europe revenue grew only 2% to £436 million (€498.87 million), while US growth spanned multiple brands and price ranges. This growth benefited from new boutiques, expanded e-commerce, and the integration of Roberto Coin jewellery.
Duffy stated that second-half trading started well and expressed confidence in the business heading into the holiday season. He also noted management remains cautious about economic and geopolitical conditions while maintaining strong full-year guidance.
