Despite US duties reaching up to 39% on Swiss goods, watches of Switzerland posted higher sales and profits, insisting that demand for top-end watches and jewellery remains resilient.
Swiss luxury watch sales are holding up strongly in the US despite ongoing steep tariffs on Swiss imports, according to half-year results from the Watches of Switzerland Group, pointing to resilient high-end demand.
The UK-listed retailer, which is the country’s largest seller of Rolex, Omega, and Cartier watches, reported group revenue of £845 million (€967mn) for the 26 weeks to 26 October 2025, up 10% at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax rose to £69 million (€78.9mn), up 6% at constant currency. Statutory profit before tax jumped 50% to £61 million (€69.78mn).
That performance comes despite a sharp increase in US tariffs on Swiss imports earlier in the year, which increased the cost of imported Swiss-made watches.
A 39% tariff on Swiss imports was imposed from 7 August 2025 before Washington and Bern agreed in November to reduce the rate to 15%.
Although a 15% tariff is still historically high, demand for some of the most expensive Swiss-made watches has grown year-on-year.
Chief executive Brian Duffy said the company “delivered a strong first half, with group revenue up 10% in constant currency and good levels of profitability… along with strong free cash flow and return on capital employed.”
The US market was the standout performer. Revenue there climbed 20% at constant currency to £409 million (€467.8mn), accounting for 48% of group revenue and 59% of adjusted EBIT.
Duffy described the US as “the key driver of our performance, with robust demand across brands and categories", adding: "the region now makes up almost 60% of our profitability.”
Watches of Switzerland said brands had responded with price rises in the US to offset higher costs from tariffs, gold prices and exchange rates, but insisted demand for core Swiss brands had remained robust.
Luxury watches remained the backbone of the business, contributing 84% of group revenue. The company reported that demand for key Swiss brands “remains robust, consistently exceeding supply”, with ongoing additions to its client Registration of Interest lists and strong growth in its Rolex Certified Pre-Owned offering in the US.
The results also highlight how exposed Swiss watchmakers and their retail partners have become to the US consumer. While UK and Europe revenue grew just 2% to £436 million (€498.87mn), the US delivered broad-based growth across brands and price points, supported by investment in new boutiques, ecommerce and the integration of US jewellery brand Roberto Coin.
Duffy said trading in the second half had started well and the group was “well placed” and "confident in the strength" of the business for the crucial holiday season. He added that management remained “mindful of the external economic and geopolitical environment” even as it posted a strong full-year guidance.
