Watches of Switzerland Reports Strong Trading Performance and Expansion Amid US Tariff Concerns

AGM trading update: solid momentum in the US and steady UK demand

Watches of Switzerland’s AGM trading update covers the 18 weeks to 31 August 2025 and lands with a clear message: performance is in line with expectations and the first half of FY26 is on track. The standout is the US, where trading has remained consistently strong despite the announcement of increased tariffs on Swiss imports. In the UK, the stability seen in H2 FY25 has continued, with good year-on-year growth.

Registration of Interest lists – effectively waitlists for in-demand models – keep growing on both sides of the Atlantic. That signals robust underlying demand, particularly for the biggest brands, and supports the group’s ongoing expansion plans.

Rolex flagship and Certified Pre-Owned are pulling their weight

The new flagship Rolex Boutique on Old Bond Street, London is exceeding expectations. Client response, footfall and conversion are all described as very good. Downstairs, the Rolex Certified Pre-Owned salon is fast becoming a destination in its own right, which is exactly what the group wants from a halo site.

More broadly, the group’s Certified Pre-Owned business – pre-owned watches authenticated by the brand – is growing well in both the UK and US. Management sees significant opportunity in this category. That matters because it broadens the customer funnel and keeps clients engaged even when new watch allocations are tight.

Ecommerce upgrade pays off, especially in the US

Ecommerce has delivered good growth, helped by an upgrade to the Watches of Switzerland site in the US. Improved online journeys tend to lift conversion and basket size, and they complement the showroom network by capturing demand outside flagship locations. The blend of digital and physical is increasingly central to the playbook here.

Roberto Coin: momentum building with brand expansion

Since acquiring exclusive distribution rights for Roberto Coin in May 2024, the group says Roberto Coin Inc. is performing strongly. An advertising campaign featuring Dakota Johnson as global brand ambassador is live, and elevation of the brand within the group’s own showrooms is proving successful.

Crucially, the pipeline is moving: leases are signed for three Roberto Coin mono-brand boutiques in Miami, New York and Las Vegas, with openings slated for Q3 FY26. There is also scope to extend the refined offering to retail partners, which could unlock further distribution gains.

Showroom development: Manchester to Miami, Plano to Oxford

The physical network keeps evolving. Recent and upcoming highlights include:

• Northern Goldsmiths, Newcastle – refurbished; a storied Rolex location retailing since 1919.
• Audemars Piguet AP House, Manchester – opened as a joint venture.
• Mappin & Webb Luxury Jewellery Boutique, Manchester – complete and opening on 4 September 2025, with geographical exclusivity for several luxury jewellery brands and the group’s first De Beers mono-brand boutique.
• Mayors Lenox, Atlanta – relocated and opened in August 2025.
• Q4 FY25 openings – Mayors Jacksonville, Florida and Watches of Switzerland Plano, Texas (the first showroom in Texas) are off to an encouraging start.
• Coming up internationally – Watches of Switzerland Southdale, Minneapolis and the relocation of Mayors University Town Center Sarasota, Florida.
• In the UK – completion of the Mappin & Webb Birmingham conversion, relocation of Goldsmiths Merry Hill, Birmingham and expansion of Goldsmiths Oxford.

For a retailer that wins on experience and service, continuous refresh and relocation into higher productivity spaces is the right lever to pull.

US tariffs on Swiss imports: why management is relaxed for H1

Management does not anticipate any material H1 FY26 impact from US tariffs. The reason given is simple: brand partners increased inventories, as indicated by Swiss Watch Exports in July 2025 being up 45% versus the prior year. In other words, the supply pipeline into the US has been primed ahead of any pass-through effects.

The qualifier is important. The group will provide a further update on any potential impact on FY26 guidance once more information is available. Investors should treat H1 as buffered and keep an eye on H2, when pricing and allocation responses from the Swiss brands become clearer.

What’s not disclosed in this update

This is a trading update, not a full results statement. There are no figures disclosed for revenue, like-for-like sales, gross margin, operating profit, net cash or leverage. There is no quantified guidance beyond “in line with FY26 guidance provided in July 2025,” and the exact tariff rates or implementation timelines are not disclosed.

Key numbers and milestones at a glance

Reporting period	18 weeks to 31 August 2025
Guidance status	On track for a good H1 FY26, in line with expectations
US tariff impact	No material impact anticipated in H1 FY26
Swiss Watch Exports	July 2025 +45% vs prior year
Total showrooms (UK and US)	195
Mono-brand boutiques	84
Flagship update	Rolex Boutique, Old Bond Street exceeding expectations
New jewellery flagship	Mappin & Webb Luxury Jewellery Boutique, Manchester opens 4 September 2025
Roberto Coin pipeline	Three mono-brand boutiques in Miami, New York and Las Vegas opening Q3 FY26

Why this matters for shareholders

Demand looks resilient in both core markets, with the US again doing the heavy lifting. The Old Bond Street flagship validation is useful, since halo doors drive brand heat, client acquisition and vendor confidence. The CPO and ecommerce momentum provides additional growth lanes that are less constrained by new watch allocations.

On expansion, the pipeline is active without feeling reckless. The blend of refurbishments, relocations and selective new cities suggests a focus on productivity, not just store count. Roberto Coin provides a jewellery growth vector alongside the watch franchises, which should help diversify sales mix over time.

Risks and watchouts

• Tariffs – H1 is likely insulated by higher inventories, but H2 could still see pricing or mix effects depending on how brands respond. The company will update once it knows more.
• Supply concentration – Success remains closely tied to allocations from leading Swiss brands. Registration of Interest lists growing is healthy, but it also reflects constrained supply.
• Execution – Multiple showroom projects are landing across the US and UK. Smooth execution is needed to avoid disruption during peak trading periods.

Josh’s take: steady-as-she-goes, with upside from pipelines

This reads like a confident, controlled update. In the near term, inventories appear to neutralise the tariff shock, the US is performing well, and the UK is stable. The Rolex flagship is doing what it should, CPO is gaining traction, and the ecommerce rebuild is delivering in the States.

The bigger picture is about optionality. Roberto Coin gives the group a jewellery growth engine, while a thoughtful showroom pipeline underpins medium-term sales density. There are no hard numbers here to re-rate the shares on the spot, but the tone and detail are reassuring. If the tariff overhang fades or proves manageable into H2, there is room for sentiment to improve.