Despite US tariffs hitting 39% on Swiss imports, Watches of Switzerland boosted sales and profits. High-end watch and jewelry demand remains strong, supporting growth. The company’s half-year results show Swiss luxury watches thrive in the US, even with steep import costs.
Financial Growth and Profitability
The UK-listed retailer, largest seller of Rolex, Omega, and Cartier, earned £845 million (€967mn) in the 26 weeks to 26 October 2025. Revenue rose 10% at constant currency and 8% at reported rates. Adjusted EBIT increased 6% to £69 million (€78.9mn), while statutory profit before tax jumped 50% to £61 million (€69.78mn).
US tariffs rose sharply earlier this year, increasing Swiss watch prices. From 7 August 2025, Washington imposed a 39% duty, later reduced to 15% in November. Even with this historically high tariff, demand for top-tier Swiss watches grew year-on-year. CEO Brian Duffy highlighted strong revenue growth, profitability, and free cash flow.
US Market Leads Expansion
The US market showed the strongest performance, with revenue climbing 20% at constant currency to £409 million (€467.8mn). This accounted for 48% of group revenue and 59% of adjusted EBIT. Duffy called the US “the key driver of performance,” noting robust demand across brands.
Price increases helped offset tariffs, gold prices, and exchange rate effects, yet demand for core Swiss brands stayed high. Luxury watches contributed 84% of revenue, with supply struggling to meet demand. Rolex Certified Pre-Owned sales and client registrations in the US continued strong growth.
The results reveal Swiss watchmakers’ heavy reliance on the US market. While UK and European revenue grew only 2% to £436 million (€498.87mn), the US achieved broad-based gains across price points and brands. Expansion included new boutiques, ecommerce, and the integration of Roberto Coin jewelry.
Duffy reported strong early trading in the second half and expressed confidence for the holiday season. Management remains cautious of external economic and geopolitical risks while providing strong full-year guidance.
