Despite US tariffs of up to 39%, Watches of Switzerland recorded higher sales and profits, showing that demand for premium watches and jewelry remains strong. Swiss luxury watch sales remain solid in the US, according to the half-year results from the Watches of Switzerland Group, reflecting continued interest in high-end timepieces.
The UK-listed retailer, the country’s largest seller of Rolex, Omega, and Cartier watches, generated £845 million (€967 million) in revenue for the 26 weeks ending 26 October 2025, rising 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 surged 50% to £61 million (€69.78 million).
These results came despite a sharp rise in US tariffs on Swiss imports earlier this year, which pushed up the cost of imported Swiss-made watches. The US imposed a 39% tariff on Swiss goods starting 7 August 2025, later reducing it to 15% in November after negotiations with Switzerland.
Even with a 15% tariff, historically high by standards, demand for the most expensive Swiss watches grew compared with last year.
Executive Highlights Strong Performance
CEO Brian Duffy emphasized the company delivered a strong first half, with group revenue up 10% in constant currency and solid profitability. He highlighted strong free cash flow and a healthy return on capital employed.
The US market stood out, with revenue climbing 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” and reported robust demand across brands and categories. He noted the region now accounts for nearly 60% of profitability.
Watches of Switzerland raised prices in the US to offset higher costs from tariffs, gold prices, and exchange rates, yet demand for core Swiss brands stayed resilient.
Luxury Watches Dominate Sales
Luxury watches remain the foundation of the business, contributing 84% of group revenue. The company reported consistent excess demand for major Swiss brands, with growing client Registration of Interest lists and strong expansion of its Rolex Certified Pre-Owned offering in the US.
The results also underline how dependent Swiss watchmakers and retailers have become on US consumers. While UK and Europe revenue grew only 2% to £436 million (€498.87 million), the US delivered broad growth across brands and price ranges, supported by new boutiques, ecommerce, and integration of US jewelry brand Roberto Coin.
Duffy added that second-half trading started well and the group feels “well placed” and confident in its strength for the crucial holiday season. He cautioned that management remains aware of the external economic and geopolitical environment even as it delivers strong full-year guidance.
