Watches of Switzerland Group (WOSG) has cautioned that a significant number of its products in the US are set to experience price hikes due to Trump's 10% tariff on non-US goods, causing its share price to drop by over five per cent in early trading.
The London-listed firm, which retails luxury watches from brands such as Patek Philippe, Rolex, and Audemars Piguet, noted that price increases from partners have so far been in the mid-single digits, as reported by .
However, the company stated that the long-term impact of these tariffs "remained uncertain."
WOSG said: "We are in regular dialogue with our brand partners, but it is too early to comment on the potential sector impact of further changes."
Trump's 'Liberation Day' tariffs, which initially imposed a 31% levy on Switzerland, resulted in a 20% fall in WOSG's share price as investors braced for substantial price increases.
Peel Hunt warned that a decline in sales could significantly impact WOSG, which is banking on a surge in US sales for its turnaround.
"Our forecasts have most of the group's growth coming from the US. We will wait until the economic backdrop calms and see how the US consumer responds... but the risk is clearly to the downside," Peel Hunt commented at the time.
Swiss watch exports to the US have begun to decelerate, with sales dropping 9.5% in May, according to recent data from the Federation of the Swiss Watch Industry (FH).
This downturn reverses a sales recovery that had been gaining momentum since the beginning of the year.
Watches of Switzerland boosts annual revenue
Watches of Switzerland (WOSG) has reported an increase in annual revenue for the year ending April 27. Revenue rose by 8% to £1.6 billion, propelled by a 16% surge in US sales.
Adjusted earnings before interest, tax depreciation and amortisation (EBITDA) also grew by 8%, reaching £192 million, while operating profit dipped by 5% to £114 million.
CEO Brian Duffy expressed pride in the team's robust performance, stating: "The 2025 financial year was a busy one for the Group as we continued to deliver on our strategy at pace."
Looking forward, despite acknowledging potential challenges such as changes in US tariffs and broader macroeconomic and consumer conditions, Duffy remains confident in the strength of their diversified business model, their solid pipeline of showroom openings and growth projects, and the resilience of the luxury watch and luxury branded jewellery sectors.
