US tariffs impact Watches of Switzerland as group posts record revenue

Published 03/07/2025, 07:16
US tariffs impact Watches of Switzerland as group posts record revenue

LONDON - Watches of Switzerland Group PLC reported record revenue of £1.65 billion for the 52 weeks ended April 27, 2025, an 8% increase at constant currency compared to the previous year, according to a press release statement issued Thursday.

The luxury watch and jewelry retailer saw its US business surpass $1 billion in revenue for the first time, growing 16% at constant currency, while UK revenue increased by 2%. Adjusted EBIT rose 12% to £150 million.

The company noted a significant improvement in trading during the second half of the fiscal year, with group revenue up 12% compared to 4% in the first half. Luxury watches revenue grew 2% at constant currency, while luxury jewelry revenue surged 108%, driven by the acquisition of Roberto Coin Inc.

"I am proud of the strong performance our team has delivered, underpinned by a significant trading improvement in H2," said Brian Duffy, Chief Executive Officer.

The group completed several key projects during the year, including opening a new flagship Rolex boutique on London’s Old Bond Street and executing three Rolex projects in the US across Texas, Florida, and Atlanta.

Looking ahead to fiscal year 2026, the company provided guidance of 6-10% constant currency revenue growth but warned of potential margin pressure, projecting adjusted EBIT margin to be flat to 100 basis points lower than the prior year.

The company expressed caution regarding US tariffs, noting that some brand partners have implemented mid-single digit price increases in response to the current 10% tariff on imported goods from Switzerland, while also reducing authorized distributors’ margin percentages.

Net debt stood at £96 million as of April 27, 2025, compared to a net cash position of £1 million a year earlier, reflecting the acquisitions of Roberto Coin Inc. and Hodinkee.

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