WoS shares jump after upbeat outlook on US tariff impact
By Frank Prenesti
Date: Wednesday 03 Sep 2025
(Sharecast News) - Shares in Watches of Switzerland jumped on Wednesday as the luxury timepiece seller 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 while Swiss watch exports jumped 45% in July from a year earlier. Shares in the company were up more than 7% in London trade
"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.
WOS added that it would provide further updates to any impact from tariffs once more information was available.
"Given its name it wouldn't have taken an arch detective to peg Watches of Switzerland as a potential victim of the shock US decision to place onerous levies on Swiss imports," said AJ Bell investment director Russ Mould.
"While the trading update is light on detail, the lack of any major alarms and the fact the company is sticking with existing guidance is enough for investors to give it a warm welcome. The issue has not completely gone away, however. Part of the reason there is no tariff impact on its North American business, which continues to tick along, is that brand partners stocked up ahead of import levies taking effect."
"What happens to demand when tariffs start to feed into higher selling prices is the key test. Elsewhere, shareholders will be pleased to see a strong showing for its e-commerce arm, given the investments the group has made in this area."
Reporting by Frank Prenesti for Sharecast.com
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