WoS sees US price rises amid tariff uncertainty

(Sharecast News) - Luxury brands seller Watches of Switzerland reported a fall in annual profits but posted record revenue as the UK returned to growth driven by domestic buyers although it warned US products would be hit by tariff increases. Pre-tax profit for the year to April 27 fell 18% to £76m, while revenue grew 7% to £1.65bn. WoS said it was still too early to comment on the potential impact of any US tariff changes.

The company, which sells luxury watches such as Rolex and Audemars Piguet said the 10% duty on goods from Switzerland had led to some brand partners raising prices in the US by mid-single digits.

"The outcome of US tariff developments remains uncertain. We are in regular dialogue with our brand partners, but it is too early further changes. We will provide a further update as to the potential impact on FY26 guidance once the situation becomes clearer," the company said on Thursday.

US President Donald Trump originally hammered Switzerland with a 31% levy, sending shares in the firm crashing by a fifth. A 90-day pause on implementing the duty ends on July 9 as countries scramble to appease the authoritarian American leader.

Adjusted earnings before interest, tax depreciation and amortization rose 8% to £192m, while operating profit fell 5% to £114m.

Reporting by Frank Prenesti for Sharecast.com