Watches of Switzerland saw rising sales and profits despite US tariffs reaching 39% on Swiss goods. The company emphasized that demand for high-end watches and jewellery stays strong. Half-year results confirmed that luxury watch sales remain resilient in the US, even with ongoing tariffs on Swiss imports.
The UK-listed retailer, Britain’s largest seller of Rolex, Omega, and Cartier watches, reported £845 million (€967 million) in group revenue 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 6% at constant currency to £69 million (€78.9 million). Statutory profit before tax surged 50% to £61 million (€69.78 million).
These results occurred despite a sharp increase in US tariffs earlier this year, which raised the cost of imported Swiss-made watches. Washington imposed a 39% tariff from 7 August 2025, later reducing it to 15% in November. Even at 15%, tariffs remain historically high, yet demand for premium Swiss watches grew year-on-year.
Strong US Performance Drives Growth
CEO Brian Duffy said the company delivered a strong first half, with revenue up 10% in constant currency, good profitability, and high free cash flow. The US market stood out as the key driver. Revenue in the US rose 20% at constant currency to £409 million (€467.8 million), representing 48% of total revenue and 59% of adjusted EBIT.
Duffy highlighted robust demand across brands and categories in the US, noting the region now accounts for almost 60% of profitability. The company raised prices in the US to offset higher costs from tariffs, gold, and exchange rates, but demand for core Swiss brands remained solid.
Luxury watches contributed 84% of total revenue, with demand consistently exceeding supply. Client registration lists expanded, and the Rolex Certified Pre-Owned business grew strongly in the US.
US Dependence and Global Strategy
The results reveal how exposed Swiss watchmakers have become to US consumers. UK and Europe revenue grew just 2% to £436 million (€498.87 million), while the US generated broad-based growth across brands and price points. The company invested in new US boutiques, e-commerce platforms, and integrated the Roberto Coin jewellery brand.
Duffy reported that trading in the second half started well, positioning the company strongly for the holiday season. Management remains aware of external economic and geopolitical risks while maintaining confidence in full-year performance.
