Watches of Switzerland (WOSG) Rallies 11% - Says U.S. Tariffs Won't Hit H1 as Swiss Exports Surge 45%

Watches of Switzerland (LSE: WOSG) said it still expects to hit its fiscal first-half numbers, pointing to healthy U.S. demand and a steady U.K. market as the main reasons why the near-term picture looks clean.

The group told the market it does not anticipate the recently threatened U.S. tariffs on Swiss watch imports to dent first-half results. Management argued that many of its supply partners had already piled up inventory, cushioning any immediate hit. That's consistent with a bigger datapoint: Swiss watch exports jumped about 45% in July versus a year earlier.

For context, the U.S. announced a tariff schedule in April that initially set a 31% rate for Switzerland; officials later floated a 39% figure. Even with that threat hanging over the category, Watches of Switzerland described performance in both the U.S. and U.K. as "encouraging" and said it remains aligned with guidance issued in July for the year ending April 2026.

Market reaction was brisk. Shares climbed roughly 11% in early trading after the announcement.

Why this matters to traders: the company's message highlights two mechanics that can mute an immediate policy shock - inventory buffers at brand partners and a current surge in exports. That leaves room for demand trends, margin pressure from any tariff pass-through, and how long those dealer inventories last to determine whether this is a temporary reprieve or the calm before a storm.

The firm also warned it will update the market if new details on tariff policy emerge, which keeps the headline risk alive even as near-term numbers look intact.

Short sentence: markets liked the update. Long sentence: whether that optimism proves durable will depend on the evolution of U.S. tariff policy, how brands manage inventory replenishment, and whether consumers keep buying at current rates - and the company will flag changes when it has them.