Watches of Switzerland achieved higher sales and profits despite US tariffs reaching 39% on Swiss goods.
The company emphasized that demand for premium watches and jewellery remains strong.
Half-year results show that Swiss luxury watch sales stay robust in the US, confirming resilient high-end demand.
Strong Revenue and Earnings Growth
The UK-listed retailer, Britain’s largest seller of Rolex, Omega, and Cartier, reported £845 million (€967mn) revenue for 26 weeks ending 26 October 2025.
Revenue rose 10% at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax reached £69 million (€78.9mn), up 6% at constant currency.
Statutory profit before tax jumped 50% to £61 million (€69.78mn).
The company achieved this growth despite sharp US tariff increases earlier in the year, which raised Swiss watch import costs.
Washington imposed a 39% tariff from 7 August 2025 before agreeing with Bern to reduce it to 15% in November.
Even with a 15% tariff, demand for premium Swiss watches grew year-on-year.
Chief executive Brian Duffy said the group delivered a strong first half, with 10% revenue growth in constant currency, solid profitability, strong free cash flow, and good return on capital.
US Market Drives Performance
The US market led the company’s success, with revenue climbing 20% at constant currency to £409 million (€467.8mn).
This revenue accounted for 48% of group revenue and 59% of adjusted EBIT.
Duffy described the US as the key growth driver, with strong demand across brands and categories.
He noted the region now generates nearly 60% of the company’s profits.
To offset higher tariffs, gold prices, and currency fluctuations, brands increased US prices, yet core Swiss brands maintained strong demand.
Luxury watches contributed 84% of group revenue, consistently exceeding supply.
Client Registration of Interest lists expanded, and Rolex Certified Pre-Owned offerings grew strongly in the US.
Revenue in the UK and Europe grew just 2% to £436 million (€498.87mn), highlighting the company’s dependence on US consumers.
US growth came from investments in boutiques, e-commerce, and integrating Roberto Coin jewellery.
Duffy reported strong second-half trading, expressing confidence in the business for the holiday season while remaining mindful of economic and geopolitical risks.
