Business News: Smaller Watch Brands Are Already Raising Prices In Response To US Tariffs

Christopher Ward reported sales of about £30.5 million for its fiscal year ended March 31, 2024, up from about £17 million the year before. Pre-tax profit rose to almost £4 million from less than £300,000 the year before, according to publicly available documents. France said the company grew both sales and profit in its most recent fiscal year as the Christopher Ward bucked the industry trend of a downturn in demand and sales.

In contrast, Audemars Piguet posted sales of about 2.4 billion CHF in 2024, according to analyst estimates. Rolex sales were about 10.5 billion CHF, according to Morgan Stanley estimates. France said that Switzerland was in a strong negotiating position with the US to have the tariffs reduced or eliminated, as there is no equivalent US luxury watch industry to protect.  He expects a deal to be reached but is also resigned to the fact that some sort of tariffs are likely to remain in place as long as the current administration is in power.

At the moment, prices US customers pay for accessories such as bracelets from Christopher Ward will rise even higher than finished watches. That’s because they are made in China and are subject to tariffs of more than 100%. Christopher Ward is supporting initiatives by the UK government to boost trade with other nations by striking potential new bilateral trade agreements with countries like India, Canada, Australia, and Singapore that could help offset the expected downturn in US sales.

Stay tuned to Hodinkee for more on the developing effects of the US tariffs.