Watches of Switzerland achieved higher sales and profits despite US tariffs on Swiss imports reaching 39%. The company reported that demand for premium watches and jewellery remains strong and resilient. Swiss luxury watch sales held up in the US, according to half-year results, showing that high-end consumer demand continues despite tariffs.
The UK-listed retailer, Britain’s largest seller of Rolex, Omega, and Cartier watches, posted group revenue of £845 million (€967 million) for the 26 weeks ending 26 October 2025. This figure rose 10% at constant currency and 8% at reported rates. Adjusted earnings before interest and tax increased to £69 million (€78.9 million), up 6% at constant currency, while statutory profit before tax jumped 50% to £61 million (€69.78 million).
Tariff Hikes and Market Responses
The company achieved this performance even after the US imposed a 39% tariff on Swiss imports from 7 August 2025. Washington and Bern later agreed to reduce the rate to 15% in November. Despite the still-high 15% tariff, demand for top-tier Swiss watches rose compared with the previous year.
Chief executive Brian Duffy reported that the company delivered strong first-half results, with a 10% revenue increase in constant currency, solid profitability, strong free cash flow, and high return on capital employed. US revenue surged 20% at constant currency to £409 million (€467.8 million), representing 48% of group revenue and 59% of adjusted EBIT.
Luxury Watches Drive Growth
Duffy called the US the main driver of the company’s performance, with strong demand across brands and categories. He noted the region now contributes nearly 60% of profitability. Brands responded to higher US costs from tariffs, gold prices, and exchange rates by raising prices, yet demand for key Swiss brands remained robust.
Luxury watches generated 84% of group revenue, maintaining their role as the company’s backbone. Key Swiss brands continued to exceed supply consistently, with growing client Registration of Interest lists and expansion in the Rolex Certified Pre-Owned segment in the US.
The results revealed the company’s growing dependence on US consumers. UK and European revenue grew only 2% to £436 million (€498.87 million), while US revenue showed broad-based growth across brands and price ranges. Investment in new boutiques, ecommerce, and the integration of US jewellery brand Roberto Coin further supported US growth.
Duffy confirmed that second-half trading started well. The company remains well-positioned and confident in performance for the holiday season while staying mindful of economic and geopolitical challenges. Full-year guidance remains strong.
