Rolex retailer gains after first-half performance lifts confidence

Watches of Switzerland Group Plc shares rose the most since April after the company’s outlook for the first half of its financial year eased investors’ concerns over the impact of US tariffs.

The stock jumped as much as 11% in early trading and was 7.2% higher by 9:46 a.m. in London. Even so, the shares remain near 2020 lows due to concerns over soft demand for high-end watches and the 39% levy the US imposed on imports from Switzerland.

Trading has been “consistently strong,” particularly in the US, in the fiscal first half — which runs through October — despite the announcement of increased tariffs, the group said Wednesday. The top seller of Rolex watches in the UK also flagged the success of its flagship boutique on Old Bond Street in London.

“The general mood in Switzerland is that the situation will improve from what it is today,” said Chief Executive Officer Brian Duffy in a Bloomberg TV interview. In the meantime, brands have front-loaded inventory in the US to buy time and cushion the effect of tariffs, he said.

“So there hasn’t really been any impact on conditions or pricing from our brands. We’re trading well. We feel very positive about our half-year,” Duffy added.

“This trading statement is reassuring and should underpin first-half 2026 expectations, particularly in the context of softer investor sentiment,” said RBC analyst Piral Dadhania in a note.

The upbeat outlook comes after Swatch Group AG CEO Nick Hayek last week soothed investor nerves over the impact of tariffs on its US business, giving a boost to the rest of the watch industry.

Still, Duffy said there’s uncertainty for the second half of the financial year. Brands are likely to increase pricing internationally — not only in the US as a result of tariffs, but also due to the weaker dollar and higher gold prices, he added.