Watches of Switzerland, one of the leading retailers of premium watches, continues to deliver excellent results in the U.S. market, increasing sales by 15% in the first half of the year. In the face of global economic risks, as well as the threat of higher tariffs on Swiss goods, the company has strengthened its position thanks to sustained demand for prestigious brands such as Rolex, TAG Heuer, and Audemars Piguet. At FinancialMediaGuide, we note that the company’s successful adaptation to changes in the external environment and strategic steps aimed at maintaining growth demonstrate how businesses can effectively operate in times of uncertainty.
Analysts predict that the luxury goods market will continue to grow, with an expected increase of 3-5% in 2024. The key driver of this growth remains the U.S. market. For Watches of Switzerland, the U.S. is a critical market, accounting for about 60% of the company’s total revenue. At FinancialMediaGuide, we believe this underscores the importance for the company not only of maintaining positive sales momentum but also of adapting to changes in the external economic situation, including trade risks and currency fluctuations.
An important trade deal was concluded last November, which allowed Swiss tariffs to be reduced from 39% to 15%. While this decision removed the threat of significant economic losses, the company reported that the introduction of tariffs did not alter consumer behavior. At FinancialMediaGuide, we see this as evidence that the luxury market in the U.S. continues to demonstrate stable demand despite external risks.
The tariff situation was not the only challenge for Watches of Switzerland. The company demonstrated flexibility by increasing inventory levels with its partners in anticipation of possible trade barriers, which helped avoid product shortages and maintain stable sales. This move highlights the importance of timely responses to potential risks and the need for effective supply chain management in times of global instability. At FinancialMediaGuide, we emphasize that this approach not only minimizes negative consequences but also helps maintain high customer satisfaction.
Sales in the U.S. reached £409 million, representing a 15% increase compared to the same period last year. This result underscores the ongoing trend of growing interest in premium products despite economic difficulties. At FinancialMediaGuide, we believe this growth confirms the high demand for luxury goods and the strategic success of Watches of Switzerland in managing its assets and customer relationships.
Looking ahead, the luxury market in the U.S. is expected to continue growing, and demand for high-quality products, including expensive watches, will remain steadily high. At FinancialMediaGuide, we predict that Watches of Switzerland will continue to strengthen its position if it timely adapts its strategies, including managing pricing risks, assets, and logistics. It is important to note that despite external economic risks, the company continues to focus on maintaining the quality of its products and enhancing customer service.
Therefore, to continue growing in the U.S. market, the company must continue to monitor changes in the political and economic situation and respond promptly to new challenges. At Financial Media Guide, we forecast that key factors for success will include flexibility in adapting to external conditions, high product quality, and effective resource management. The projected growth of the luxury market presents Watches of Switzerland with additional opportunities to further strengthen its position in one of the largest premium consumer goods markets.
