Despite US tariffs reaching 39% on Swiss imports, Watches of Switzerland increased sales and profits. High-end watch and jewelry demand remains strong.
The UK-listed retailer, the nation’s top seller of Rolex, Omega, and Cartier watches, reported £845 million (€967 million) revenue for the 26 weeks ending 26 October 2025. This represents a 10% rise at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax reached £69 million (€78.9 million), up 6% at constant currency. Statutory profit before tax jumped 50% to £61 million (€69.78 million).
The growth came despite US tariffs sharply increasing the cost of imported Swiss watches earlier this year. Washington imposed a 39% tariff on 7 August 2025, later reduced to 15% in November.
Even at 15%, tariffs remain historically high, yet demand for premium Swiss watches grew year-on-year.
US Market Drives Growth
Chief Executive Brian Duffy highlighted a strong first half, with revenue up 10% in constant currency, solid profitability, strong cash flow, and high return on capital.
The US market led performance. Revenue rose 20% at constant currency to £409 million (€467.8 million), representing 48% of group revenue and 59% of adjusted EBIT.
Duffy called the US “the key driver of our performance, with robust demand across brands and categories.” He noted the region now generates nearly 60% of profitability.
Watches of Switzerland said brands raised US prices to offset higher costs from tariffs, gold, and exchange rates, while core Swiss brand demand remained strong.
Luxury watches remain the business backbone, contributing 84% of revenue. Demand for key Swiss brands consistently exceeds supply, expanding Registration of Interest lists and boosting Rolex Certified Pre-Owned sales in the US.
Broader Market and Future Outlook
The results underline Swiss watchmakers’ reliance on the US consumer. UK and European revenue grew only 2% to £436 million (€498.87 million). In contrast, US growth spanned all brands and price ranges, supported by new boutiques, ecommerce, and integrating US jewelry brand Roberto Coin.
Duffy said second-half trading started well. The group positions itself confidently for the crucial holiday season while staying mindful of global economic and geopolitical conditions.
He reiterated strong full-year guidance, reflecting resilient high-end demand and continued strategic investment in the US market.
