Overview

• The retailer reported consistently strong sales over the 18 weeks to Aug. 31, said it sees no material first-half hit from the 39% U.S. levy, and kept its outlook including 6%–10% revenue growth.
• Shares rose as much as about 11% in early Wednesday trading after the update reassured investors.
• Brands and U.S. partners front-loaded supply before the tariff took effect, with Swiss watch exports surging roughly 45% in July, providing a temporary buffer.
• Chief executive Brian Duffy said brands are likely to raise prices in the U.S. and elsewhere, estimating about 30% of the company’s American business will see increases, while analysts warn demand will be tested once higher prices reach consumers and note WOSG’s thinner margins versus peers.
• Swatch signaled 5%–10% U.S. price increases to protect margins, and the U.S. accounts for roughly 45% of Watches of Switzerland’s revenue, focusing attention on second-half trading.