Despite US tariffs hitting 39% on Swiss imports, Watches of Switzerland reported stronger sales and profits. The company said high-end watch and jewellery demand remains robust. Swiss luxury watches continued performing well in the US, according to half-year results, showing that affluent consumers still seek premium timepieces despite higher costs.
Strong Revenue and Profit Growth
Watches of Switzerland, the UK’s largest retailer of Rolex, Omega, and Cartier, recorded £845 million (€967 million) revenue for the 26 weeks ending 26 October 2025. This represents a 10% increase at constant currency and 8% at reported rates. Adjusted earnings before interest and tax rose 6% at constant currency to £69 million (€78.9 million). Statutory profit before tax jumped 50% to £61 million (€69.78 million).
The company achieved this growth despite a US tariff hike earlier in 2025, which raised Swiss watch import costs. Washington and Bern reduced the tariff from 39% to 15% in November. Even at 15%, tariffs remain historically high, yet demand for the most expensive Swiss watches rose year-on-year. CEO Brian Duffy said the group “delivered strong revenue, profitability, free cash flow, and return on capital employed.”
US Market Drives Performance
Revenue from the US climbed 20% at constant currency to £409 million (€467.8 million), representing 48% of total revenue and 59% of adjusted EBIT. Duffy called the US “the key driver of our performance, with strong demand across brands and categories.” The company raised US prices to offset tariffs, gold costs, and exchange rate fluctuations, yet demand stayed resilient.
Luxury watches generated 84% of total revenue. Key Swiss brands consistently outpaced supply, expanding client Registration of Interest lists and boosting Rolex Certified Pre-Owned sales in the US. The results show Swiss watchmakers increasingly rely on US consumers, as UK and European revenue grew only 2% to £436 million (€498.87 million). The US growth benefited from new boutiques, e-commerce, and the integration of jewellery brand Roberto Coin.
Duffy said second-half trading started positively, and the group remains “well placed” and confident for the holiday season. Management continues to monitor the economic and geopolitical environment while maintaining strong full-year guidance.
