Watches of Switzerland recorded higher sales and profits even as US duties on Swiss goods reached 39%.
Swiss luxury watch sales held firm in the US despite steep tariffs on imported Swiss products.
Half-year results from the Watches of Switzerland Group showed strong demand for high-end watches and jewellery.
The UK-listed retailer, which sells Rolex, Omega, and Cartier, reported revenue of £845 million for the 26 weeks to 26 October 2025.
Revenue grew 10% at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax rose to £69 million, increasing 6% at constant currency.
Statutory profit before tax jumped 50% to £61 million.
These results arrived even as US tariffs increased the cost of importing Swiss watches earlier in the year.
Washington imposed a 39% tariff on 7 August 2025, then reduced it to 15% after negotiations with Bern in November.
Demand still strengthened year-on-year for expensive Swiss-made models despite the reduced but high tariff.
US Market Drives Strong Growth
Chief executive Brian Duffy said the group delivered a strong first half with rising revenue, profitability, and free cash flow.
The US market led the performance and posted revenue of £409 million at constant currency.
The region accounted for 48% of overall revenue and 59% of adjusted EBIT.
Duffy emphasized the US as the “key driver” due to strong demand across categories and brands.
He noted that the region now generates almost 60% of the company’s profitability.
Brands raised prices in the US to offset tariff costs, gold prices, and exchange-rate pressures.
The company stressed that demand for core Swiss brands remained solid despite these adjustments.
Luxury watches accounted for 84% of total revenue and continued to anchor the business.
Demand for top Swiss brands consistently exceeded supply and expanded client Registration of Interest lists.
The Rolex Certified Pre-Owned program in the US also recorded strong growth.
Global Exposure and Outlook
The results underscored the company’s growing reliance on US consumers.
UK and Europe revenue grew only 2% to £436 million, revealing weaker demand compared with the US.
Growth in the US spanned multiple brands and price tiers, supported by new boutiques and ecommerce.
The integration of US jewellery brand Roberto Coin further boosted performance in the region.
Duffy said the second half began positively and positioned the company well for the holiday season.
He expressed confidence in the business while acknowledging external economic and geopolitical risks.
The group reaffirmed its strong full-year guidance after delivering resilient results under challenging conditions.
