Despite US duties reaching 39% on Swiss goods, Watches of Switzerland increased both sales and profits. The company confirmed strong demand for high-end watches and jewellery remained resilient.
Half-year results show Swiss luxury watch sales in the US remain strong despite steep tariffs on imports. The Watches of Switzerland Group reported that high-end demand continues to support growth.
Revenue and Profit Growth
The UK-listed retailer, largest seller of Rolex, Omega, and Cartier, recorded group revenue of £845 million (€967 million) for the 26 weeks ending 26 October 2025. Revenue rose 10% at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax climbed to £69 million (€78.9 million), increasing 6% at constant currency. Statutory profit before tax jumped 50% to £61 million (€69.78 million).
This strong performance came despite higher US tariffs on Swiss imports earlier in the year, which raised costs for Swiss-made watches. On 7 August 2025, Washington imposed a 39% tariff, later reduced to 15% in November.
Even at 15%, tariffs remain historically high, yet demand for premium Swiss watches grew year-on-year. CEO Brian Duffy highlighted that group revenue rose 10% in constant currency, with healthy profitability, strong free cash flow, and solid return on capital employed.
US Market Drives Growth
The US market delivered the strongest results, with revenue up 20% at constant currency to £409 million (€467.8 million). It represented 48% of group revenue and 59% of adjusted EBIT.
Duffy described the US as “the key driver,” noting robust demand across brands and categories. The region now accounts for nearly 60% of the group’s profitability.
Watches of Switzerland increased prices in the US to offset tariffs, gold costs, and currency shifts. Despite higher prices, demand for core Swiss brands stayed strong.
Luxury watches remain the business’s core, contributing 84% of group revenue. Demand for key Swiss brands continues to exceed supply, with growth in Rolex Certified Pre-Owned and expanding Registration of Interest lists in the US.
While UK and European revenue grew only 2% to £436 million (€498.87 million), the US showed broad growth across brands and price points. Expansion included new boutiques, ecommerce, and integrating US jewellery brand Roberto Coin.
Duffy noted that trading in the second half started well. He stated the group remains well-positioned and confident for the holiday season, while staying mindful of external economic and geopolitical challenges.
