Consistent appetite for luxury timepieces despite Trump's tariffs has provided reassurance to investors this summer, though analysts have cautioned this resilience may not endure if costs escalate.
On Wednesday morning, Watches of Switzerland Group informed markets that appetite for watches has remained "consistently strong" throughout summer, propelling its share price upwards by eight per cent, as reported by .
US President Donald Trump levied a 39 per cent duty on Swiss imports, causing WOSG's stock to plummet as investors worried about the impact on American consumer behaviour. American consumption represents approximately 45 per cent of its turnover.
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However, WOSG informed markets this morning that performance has been "particularly good" in the US, "despite the announcement of increased tariffs on Swiss imports".
The firm does not expect any significant consequences from the US duties during the first half of the 2026 financial year, primarily because brand partners have boosted stock levels.
Swatch, similarly, recently informed investors that it was prepared to introduce a five to 10 per cent price rise in the US to safeguard its profit margins, and reported minimal impact on consumer appetite from price adjustments implemented earlier this year.
'What happens when prices rise?'
Analysts have raised concerns that retailers are selling timepieces that were brought in under the previous lower tariff structure, which has enabled them to delay the unavoidable price increases.
"Part of the reason there is no tariff impact on [WOSG's] North American business, which continues to tick along, is that brand partners stocked up ahead of import levies taking effect," AJ Bell analyst Russ Mould said.
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Shipments to the US surged by 45 per cent in July, according to the Federation of the Swiss Watch Industry (FH), which the federation credited to domestic retailers accumulating inventory.
However, WOSG chief executive Brian Duffy remarked that "the general mood in Switzerland is that the situation will improve from what it is today" during a Bloomberg TV interview, noting that manufacturers' advance stockpiling would provide breathing space.
Nevertheless, Mould warned that the "key test" lies in what occurs to consumer appetite when levies begin filtering through to elevated retail prices.
RBC analysts have highlighted that WOSG operates with slimmer profit margins than rivals, rendering it more challenging to absorb tariff pressures.
The company will need to "hope the strength of the brands it stocks means any impact [of higher prices] is limited," Mould said.