Watches of Switzerland: Trump tariffs spark hike luxury timepiece prices
Watches of Switzerland Group (WOSG) has warned scores of its products in America will see price increases due to Trump’s 10 per cent tariff on non-US goods.
Its share price fell more than five per cent in early trades.
The London-listed company, which sells luxury timepieces from Patek Philippe, Rolex, and Audemars Piguet – amongst others – said the price increases from partners was in the mid-single digits so far.
The firm said the long-term impact of the tariffs “remained uncertain”.
“We are in regular dialogue with our brand partners, but it is too early to comment on the potential sector impact of further changes,” WOSG said.
Trumps’ ‘Liberation Day’ tariffs – which originally slapped a 31 per cent levy on Switzerland – led to a 20 per cent drop in WOSG’s share price as investors feared huge price increases.
Peel Hunt warned that a drop in sales would have a significant negative impact on WOSG, which has pinned its turnaround hopes on an uptick in US sales.
“Our forecasts have most of the group’s growth coming from the US. We will wait until the economic backdrop calms and see how the US consumer responds… but the risk is clearly to the downside,” Peel Hunt said at the time.
Overall Swiss watch exports to the US have already started to slow. Sales fell 9.5 per cent in May, according to new figures from the Federation of the Swiss Watch Industry (FH), reversing a recovery in sales that has been brewing since the start of the year.
Watches of Switzerland boosts annual revenue
WOSG updated markets on its annual performance, which covers the year to April 27.
Revenue grew eight per cent to £1.6bn, driven by US growth of 16 per cent.
Adjusted earnings before interest, tax depreciation and amortization (EBITDA) grew eight per cent to £192m, while operating profit fell five per cent to £114m.
“I am proud of the strong performance our team has delivered… [the 2025 financial year] was a busy year for the Group as we continued to deliver on our strategy at pace,” CEO Brian Duffy said.
“As we look ahead, whilst we are of course remaining mindful of the broader macroeconomic and consumer environment, including potential US tariff changes, we remain confident in the strength of our diversified business model, our strong pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery categories.”