Business as usual for Watches of Switzerland and Swatch Group despite US tariff hike

Both groups tell financial analysts that sales are still growing in the United States, but there have not yet been price rises since the additional 39% tariff hit on August 7.

 

by Rob CorderSeptember 3, 2025

 

Watches of Switzerland Group’s share price jumped by 8% at the opening bell today after issuing a reassuring update on 18 weeks trading up to the end of August.

There were no financial figures provided with the update, but it includes guidance that the group is on track to deliver a good H1 FY26 in line with expectations.

 

Its annual financial report released in July said it is shooting for year-on-year growth of 6% to 10%.

 

Despite this morning’s bump, shares are currently trading at £3.43, close to a five-year low of £3.32 recorded in the summer of 2024.

 

 

The update is the first from WoSG to include insight into the impact of an additional 39% tariff imposed by President Trump’s administration on all Swiss watches entering the United States, and suggests there has been no negative impact so far.

 

“We have seen consistently strong trading throughout the period, particularly in the US despite the announcement of increased tariffs on Swiss imports,” the trading update states.

Sales in the UK rose during the 18 week period by an unspecified rate, continuing a return to growth that began at the start of the year.

 

“The stability we saw in the UK luxury watch and jewellery markets during H2 FY25 has continued, and we have delivered good year on year growth. Registration of Interest lists continue to grow in both [UK and USA] markets,” the company describes.

 

Prices rose for the majority of luxury watchmakers in April in the United States because of a mixture of an additional 10% tariff, record gold prices and a strong Swiss franc.

But they have not been increased since the additional 39% tariff rate hit on August 7 for any of the major brands.

 

WatchPro has been tracking prices for a basket of watches from leading brands since the first week of August, before the 39% tariff rate was announced.

 

Almost one month on, there appear to have been no price rises for Rolex, Patek Philippe, Cartier, Breitling, IWC, Omega, TAG Heuer, Tissot and Audemars Piguet across a sample of around 40 references.

 

September 1 is a date often used by brands to adjust their prices, but has passed without price changes to any of the watches being tracked.

Swatch Group CEO Nick Hayek has also been bullish on the resilience of the US market.

 

In an interview with Switzerland’s German-language newspaper Frankfurter Allgemeine Sonntagszeitung, he said: “The US is still booming”.

 

“We’re seeing growth of 20% to 30% in some cases — despite the price increases of around 5% that we introduced in April, due to tariffs and the strong Swiss franc,” he added.

Last week, Mr Hayek told financial analysts that the business, home to Omega, Longines, Tissot, Blancpain, Breguet and Swatch, has around six months’ worth of stock in America.

Swiss watch exports to the United States totalled CHF 3.11 billion for the first seven months of the year, a 24.1% rise on the prior year.

 

This equates to additional stock in the country worth CHF 600 million, compared to the same period in 2024.

In 2024, the monthly average for Swiss watch exports to the USA was CHF 364 million.

 

Taken together, the data suggests America had around seven weeks’ worth of additional stock in the country at the end of July.

 

Watches of Switzerland Group says its performance in FY26, which began in April, is encouraging and in line with guidance provided in July 2025 — revenue growth of 6% to 10% — across both the UK and USA, which would equal sales of between £1.75 billion and £1.8 billion.

 

That will be helped by key openings in the UK this year including an AP House in Manchester as a joint venture with Audemars Piguet, a Rolex Boutique on London’s Old Bond Street and the reopening of a spectacularly refurbished Northern Goldsmiths in Newcastle-Upon-Tyne.

 

“We do not anticipate any material impact from the US tariffs in H1 FY26 as brand partners have increased inventories as shown by Swiss Watch Exports in July 2025 (+45% vs prior year).

 

We will provide a further update as to any potential impact on FY26 guidance, if any, once more information is available,” the WoSG update concludes.