Watches of Switzerland Reports Strong First-Half Performance Despite Global Volatility

Luxury watch retailer Watches of Switzerland Group posted a solid commercial performance in both the U.S. and U.K. during the first half of its fiscal year, even amid economic uncertainty. The company highlighted strong results from recently acquired jewelry brand Roberto Coin and noted that new U.S. tariffs on Swiss watch imports are not expected to significantly impact preliminary results.

U.S. Watch Sales Surge 45% in July

According to internal data, U.S. watch exports rose 45% year-over-year in July, driven by retailers replenishing inventory ahead of the busy second half of the year. The growth also reflects steady consumer demand across the company’s two key markets—the United States and the United Kingdom.

With more than 170 stores worldwide, Watches of Switzerland is an authorized distributor for leading luxury brands including Rolex, Omega, Cartier, TAG Heuer, and Breitling. The group emphasized that market stability observed in the U.K. watch and jewelry sector during fiscal 2025 has continued into recent months, supporting strong year-over-year growth.

Limited Impact from U.S. Tariffs

In June, the U.S. government expanded tariffs on several categories of Swiss imports, including mechanical watches. However, Watches of Switzerland expects the short-term impact on margins to be “insignificant”, citing proactive shipment scheduling and renegotiated supplier contracts.

Analysts caution that potential long-term risks could arise if tariffs increase or remain in place for an extended period. Still, since 2019, U.S. demand for prestige watches has consistently outpaced supply, softening pricing pressures. Data from the Federation of the Swiss Watch Industry confirm that the U.S. continued to lead global category growth in the first half of 2025, despite tariffs.

Official Results Due in December

The group will release its full first-half financial results in December, including detailed revenue, operating profit, and cash flow figures, as well as updated guidance for the remainder of the fiscal year.

Until then, Watches of Switzerland plans to continue expanding its U.S. retail footprint and fully integrating Roberto Coin into its sales platform. Executives reaffirmed the company’s strategy to strengthen relationships with top Swiss manufacturers, broaden its selection of fine jewelry, and scale e-commerce channels to reduce reliance on high-demand Rolex models.

In the U.K., the group is investing in store refurbishments and staff training programs to enhance the customer experience while boosting revenue from after-sales services and accessories.

Outlook for the Luxury Watch Market

Industry experts note that regional distributor consolidation and digitalization of sales remain accelerating trends. Companies with the capital and scale to manage global inventories are expected to gain market share. Watches of Switzerland is well-positioned to leverage its multichannel presence and strong ties with Swiss watchmakers to capture pent-up demand in emerging markets, while reinforcing its dominance in traditional hubs.

The December earnings release will be closely watched by investors and suppliers, providing key insights into margins, pricing power, and cost pass-through capacity heading into 2026.

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