Watches of Switzerland reported rising sales and profits even with US tariffs on Swiss goods hitting 39%.
The company said demand for luxury watches and jewellery remains strong and resilient.
Half-year results show Swiss watch sales in the US holding steady despite steep import costs, highlighting continued high-end demand.
The UK-listed retailer, Britain’s largest seller of Rolex, Omega, and Cartier, recorded £845 million (€967mn) in revenue for the 26 weeks ending 26 October 2025.
Revenue increased 10% at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax climbed 6% at constant currency to £69 million (€78.9mn), while statutory profit before tax surged 50% to £61 million (€69.78mn).
Tariff Hikes Fail to Slow Growth
US tariffs sharply raised Swiss import costs earlier in the year.
From 7 August 2025, Washington imposed a 39% tariff on Swiss goods before reducing it to 15% in November.
Even with a historically high 15% tariff, demand for premium Swiss watches increased year-on-year.
Chief executive Brian Duffy emphasized strong first-half performance, highlighting revenue growth, healthy profitability, and robust free cash flow.
The US market led the gains. Revenue in the region rose 20% at constant currency to £409 million (€467.8mn).
The US accounted for 48% of total revenue and 59% of adjusted EBIT.
Duffy called the US “the key driver,” noting strong demand across brands and product categories.
Brands raised US prices to offset tariffs, gold fluctuations, and exchange rates, yet core Swiss brand demand stayed strong.
Luxury Watches Drive Business Expansion
Luxury watches contributed 84% of group revenue.
The company reported consistent demand exceeding supply, with growing client interest lists and expansion of the Rolex Certified Pre-Owned program in the US.
Results underline Swiss watchmakers’ dependence on US consumers.
While UK and Europe revenue grew only 2% to £436 million (€498.87mn), the US delivered broad growth supported by boutique openings, e-commerce, and integrating Roberto Coin jewellery.
Duffy said second-half trading started well.
He stated the group remains confident heading into the holiday season but stays aware of external economic and geopolitical risks.
The company maintained strong guidance for the full year, reflecting optimism in its long-term business strength.
