Watches of Switzerland says US demand not being hurt by import tariffs

Watches of Switzerland Group PLC told its annual general meeting on Wednesday that it continues to see strong demand from the US despite the steep tariffs imposed on imports from Switzerland.

The Leicester, England-based watch and jewellery retailer said it is ‘pleased’ with its business performance in the 18 weeks that ended on Sunday and is on track for a good first half of financial year 2026 in line with its expectations.

In response, the stock rose 7.6% to 343.00 pence on Wednesday morning in London.

Watches of Switzerland said it saw consistently strong trading throughout the period, particularly in the US, despite the Trump administration’s imposition of 39% tariffs on imports from Switzerland, starting on August 1.

The company also said its flagship Rolex Boutique on Old Bond Street in London is exceeding its expectations, with good traffic levels and conversion rates. It said its Certified Pre-Owned business, at that store and elsewhere, is doing well. ‘We see significant opportunity for growth in this dynamic category,’ Watches said.

Watches of Switzerland said it doesn’t anticipate any material impact from the US tariffs on results for its financial first half, which runs to the end of October.

It said it is performing in both the US and UK in line with the guidance it provided with its full-year results in July.

At the time, Watches guided constant currency revenue growth of 6% to 10% for financial 2026.

It predicted an adjusted earnings before interest and tax margin percentage of flat to down 100 basis points versus 11.6% in the financial year to April 30, 2024.

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