Watches of Switzerland London Sales, Warns of Impact of US Tariffs

(Il Sole 24 Ore Radiocor) - The warning about the impact of US tariffs causes Watches of Switzerland to fall on the London Stock Exchange. The British retailer of luxury Swiss watches is at the bottom of the Stoxx Europe 600 index. The warning was issued on the occasion of the annual results , which turned out to be slightly better than the market's expectations .

In the financial year ended in April, the recovery in demand, especially in the US (+16%) and the acquisition of the North American operations of the Roberto Coin jewellery brand, led the group to achieve record sales of 1.65 billion pounds, up 7% on a historical basis and 8% at constant currencies, and adjusted EBIT improved by 11% to 150 million against the consensus of 148.8 million. Pre-tax profit, on the other hand, decreased by 18% to 76 million.

For the 2026 financial year, the guidance is based on maintaining US tariffs at 10% after the 90-day pause. "At present (these tariffs, ed.) on goods imported from Switzerland have prompted some of our partner brands to introduce price increases of 5% in the US, simultaneously reducing the percentage of margin of the authorized distribution network," the company indicates. "The outcome of the developments on US tariffs remains uncertain . We remain in regular contact with our partner brands, but it is too early to comment on the potential impact in the event of further changes," adds WoS. For 2026, the company now expects revenue to grow by 6-10% at constant currencies and an adjusted EBIT margin from flat to down 100 basis points versus 9.1% recorded in 2025 (from 8.8% in 2024). “We believe the key variable impacting margins will be the extent to which major brands continue to require US wholesale customers to bear some of the impact of the current 10% tariff on Swiss imports,” Jefferies analysts said.