Watches of Switzerland said it did not expect any material impact from US tariffs in the first half of fiscal 2026 as brand partners increased inventories.
The company held full-year guidance despite US President Donald Trump slapping Switzerland with a shock 39% tariff on exports. WoS said trading had been consistently strong in the 18 weeks to August 31.
"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 markets," WoS said in a trading update ahead of its annual shareholders meeting.
It added that e-commerce sales had also shown good growth, particularly in the US following the upgrade of the Watches of Switzerland website.
The 39% tariff rate is one of the highest the US has applied to a developed nation and was increased from an initial proposal of 31% after unsuccessful negotiations between Swiss officials and the Trump administration.
Reporting by Frank Prenesti for Sharecast.com