By Joshua Kirby

Steep U.S. tariffs on Swiss goods aren't hurting Watches of Switzerland's business, the group said in an update, backing its guidance for the year.

The U.K.-based retailer, which sells brands including luxury Swiss timepieces like Rolex, TAG Heuer and Hublot, said Thursday that it hadn't to date seen any significant change to consumer behaviour following the imposition of a 39% tariff on Swiss goods imported into the U.S. earlier this year.

"We understand negotiations between governments are still taking place," WoS said. "We are closely monitoring tariff developments and brand responses."

For the six months to Oct. 26, the group booked a 10% rise in revenue to 845 million pounds ($1.1 billion), including a 20% rise in U.S. sales to 409 million pounds. In the group's home market, sales were much more muted, booking only a 2% increase on Britain's gloomy high streets.

The group's profit margin for the six months fell by around half a percentage point on year, with adjusted operating earnings around 66 million-68 million pounds, in line with full-year guidance, which WoS said it continued to back despite Washington's higher tariffs. In July, the company said it expects organic revenue growth of 6%-10% for the full fiscal year, and a drop of up to 100 basis points from the margin of 9.1% booked in fiscal 2025.

"While we remain cognisant of economic and geopolitical uncertainties in the second half, including the impact of U.S. tariffs, we are confident in delivering another year of strong sales growth," Chief Executive Brian Duffy said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

November 06, 2025 02:50 ET (07:50 GMT)

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