Luxury retailer Watches of Switzerland has revealed price hikes for US customers after President Donald Trump’s move to slap a 10% tariff on European Union imports to America.
The Rolex seller said some of its “brand partners” in the US had already pushed through “mid-single digit” percentage price increases on its ranges in response to Mr Trump’s tariff hike.
The EU and the US are under pressure ahead of a looming July 9 deadline, after which Mr Trump has threatened to impose 50% tariffs on EU imports if negotiations fail.
There is currently a baseline tariff of 10% on EU imports to the US under a 90-day pause, which impacts the retailer’s ranges made in Switzerland.
Watches of Switzerland (WoS) said: “The outcome of US tariff developments remains 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.
“We will provide a further update as to the potential impact on full year 2025-26 guidance once the situation becomes clearer.”
Shares in the group fell 6% in Thursday morning trading.
In the group’s annual results, WoS posted a 5% fall in operating profits to £114 million, but saw revenues hit a record £1.65 billion in the year to April 27 as sales surged 12% in the second half.
Overall, constant currency revenues lifted 8% in the year, up 2% across the UK and Europe.
On an underlying basis and with currency movements stripped out, earnings rose 12% to £150 million, but pre-tax profits slipped 18% to £76 million.
WoS said it expects sales to grow by between 6% and 10% over the new financial year.
Brian Duffy, chief executive of WoS, said: “Our US business has continued its excellent momentum, surpassing 1 billion US dollars revenue for the first time, bolstered by the acquisition of Roberto Coin Inc.
“The UK has returned to growth as trading conditions have stabilised.
“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.”
