Watches of Switzerland reported higher sales and profits despite US duties reaching 39% on Swiss goods.
Swiss luxury watch sales continued to thrive in the US even as tariffs increased sharply.
Half-year results from the Watches of Switzerland Group showed strong resilience in premium demand.
The UK-listed retailer, known for selling Rolex, Omega, and Cartier, recorded £845 million (€967mn) in revenue for the 26 weeks to 26 October 2025.
The group achieved 10% growth at constant currency and 8% at reported rates.
Adjusted earnings before interest and tax rose to £69 million (€78.9mn), marking a 6% rise at constant currency.
Statutory profit before tax surged 50% to £61 million (€69.78mn).
These gains came even as higher US tariffs raised the cost of Swiss-made watches.
Washington imposed a 39% tariff on Swiss imports on 7 August 2025 before lowering it to 15% in November.
Demand for high-end Swiss watches still increased compared with the previous year.
US Market Drives Growth Across Premier Brands
Chief executive Brian Duffy praised the strong first half and highlighted solid revenue growth and cash flow.
He emphasized the group’s rising return on capital employed.
The US delivered the standout performance with revenue climbing 20% at constant currency to £409 million (€467.8mn).
The region accounted for 48% of group revenue and 59% of adjusted EBIT.
Duffy called the US “the key driver” and noted broad demand across brands and categories.
He stressed that almost 60% of profitability now comes from the region.
The company said watch brands raised US prices to offset tariffs, gold costs, and exchange-rate shifts.
Demand for major Swiss brands stayed firm despite higher retail prices.
Luxury watches produced 84% of group revenue and remained the core of the business.
The company continued adding clients to Registration of Interest lists and expanded its Rolex Certified Pre-Owned program in the US.
Market Reliance Grows as Holiday Season Approaches
The results reveal increased dependence on US consumers for Swiss watchmakers and their retail partners.
UK and Europe revenue grew only 2% to £436 million (€498.87mn).
The US delivered wide growth across labels and price tiers, supported by new boutiques and ecommerce expansion.
The integration of US jewellery brand Roberto Coin also strengthened performance.
Duffy said second-half trading started strongly and positioned the group well for the holiday season.
He expressed confidence in the business while acknowledging ongoing economic and geopolitical risks.
