Swiss Watch Sales in the U.S. Remain Strong Despite High Tariffs

Sales of Swiss luxury watches in the United States remain steady despite ongoing high tariffs on Swiss imports, according to the half-year results from Watches of Switzerland Group, highlighting sustained demand in the premium segment.

The UK-based company — the country’s largest retailer of Rolex, Omega, and Cartier watches — reported group revenues of €967 million for the 26 weeks ending October 26, 2025, representing a 10% increase at constant currency and an 8% rise in reported terms.

Adjusted earnings before interest and taxes (EBIT) reached €78.9 million, up 6% at constant currency, while gross profit before tax surged 50% to €69.78 million.

These results come despite the sharp increase in U.S. tariffs on Swiss imports earlier in the year, which raised the price of imported Swiss watches. On August 7, 2025, a 39% tariff was imposed, which Washington and Bern later agreed to reduce to 15% in November. While historically high, the tariff has not deterred consumers — demand for some of the most expensive Swiss watches has even risen year-on-year.

CEO Brian Duffy stated that the company “delivered a strong first half — with 10% revenue growth at constant currency, good profitability, as well as stable free cash flow and return on capital.”

The U.S. market stood out as a key driver: revenues there increased 20% at constant currency to €467.8 million, accounting for 48% of group revenues and 59% of adjusted EBIT.

Duffy described the U.S. as “a key contributor to our results, with resilient demand across all brands and product categories,” noting that the region now accounts for “almost 60% of our profit.” According to the company, brands have offset higher costs from tariffs, gold prices, and currency fluctuations through price increases in the U.S. market, yet demand for core Swiss brands remains strong.

Luxury watches continue to be the backbone of the business, contributing 84% of group revenues. The company notes that demand for leading Swiss brands “remains resilient, consistently exceeding supply,” with ongoing additions to interest lists and strong growth in the Certified Pre-Owned (CPO) Rolex program in the U.S.

The results also highlight the growing reliance of Swiss manufacturers and their retail partners on American consumers. While revenues in the UK and Europe rose only 2% to €498.87 million, the U.S. achieved broad growth across all brands and price segments, supported by investments in new boutiques, e-commerce, and the integration of American jewelry brand Roberto Coin.

Duffy noted that trading in the second half of the year has started well and that the group is “in a strong position” and “confident in the stability of the business” ahead of the key holiday season. At the same time, management remains “cautious regarding the external economic and geopolitical environment,” despite publishing a strong forecast for the year. | BGNES