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    Home»Business & Economy»Strong Sales Persist Despite Steep US Tariffs
    Business & Economy

    Strong Sales Persist Despite Steep US Tariffs

    Rachel MaddowBy Rachel MaddowDecember 4, 2025No Comments2 Mins Read
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    Watches of Switzerland reported higher sales and profits even as US duties on Swiss goods reached 39%.
    The group said demand for premium watches and jewellery stayed resilient throughout the period.
    Swiss luxury watch sales continued to perform strongly in the US despite costly import tariffs.
    The retailer announced half-year revenue of £845 million (€967mn) for the 26 weeks ending 26 October 2025.
    Revenue rose 10% at constant currency and 8% at reported rates during the period.
    Adjusted EBIT increased to £69 million (€78.9mn), while statutory profit before tax hit £61 million (€69.78mn).
    The results came as sharply higher US tariffs pushed up the cost of imported Swiss watches.
    Washington imposed a 39% tariff on 7 August 2025 before cutting it to 15% in November after talks with Bern.
    Demand for high-end Swiss watches still grew year-on-year, despite the historically elevated 15% rate.

    US Market Drives the Company’s Rising Momentum

    Chief executive Brian Duffy praised the strong first-half performance and highlighted solid free cash flow.
    He stated that the company maintained healthy profitability alongside rising returns on capital employed.
    The US market dominated the results with revenue climbing 20% at constant currency to £409 million (€467.8mn).
    The region generated 48% of group revenue and 59% of adjusted EBIT during the period.
    Duffy called the US “the key driver” of performance and noted broad demand across brands and categories.
    Brands raised US prices to offset tariff costs, rising gold prices, and exchange-rate shifts.
    Demand for leading Swiss brands remained strong, with core products consistently outstripping supply.
    Customer Registration of Interest lists expanded, and Rolex Certified Pre-Owned sales surged in the US.
    Luxury watches contributed 84% of total group revenue and continued to anchor the business.

    Company Eyes Growth While Acknowledging Global Risks

    The results underscored the company’s increasing reliance on US consumers for sustained growth.
    UK and Europe revenue rose only 2% to £436 million (€498.87mn) during the same period.
    The US market delivered wide-ranging growth supported by new stores, ecommerce investment, and Roberto Coin’s integration.
    Duffy reported strong early trading in the second half and expressed confidence heading into the holiday season.
    He said the company remained “well placed” to meet full-year guidance despite global economic uncertainty.
    Management continued to monitor geopolitical and economic risks while projecting continued positive momentum.

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