Latest news with #WatchesofSwitzerlandGroupPlc
Fashion Network
01-08-2025
- Business
- Fashion Network
Watches of Switzerland hit by Trump's new 39% Swiss import tariff
Shares of Watches of Switzerland Group Plc fell as much as 6% after U.S. President Donald Trump announced a 39% tariff on imports from Switzerland — one of the steepest rates introduced so far in the escalating trade war. The retailer, known for selling Rolex and other Swiss timepieces in the U.K. and U.S., has been hit hardest by the latest tariff measures. Financial markets in Switzerland were closed for a public holiday, initially sparing listed producers such as Richemont and Swatch Group AG from immediate share price reaction. Swiss watch exports had already surged earlier this spring, as Trump threatened a 31% levy. Importers rushed to bring in inventory ahead of potential tariffs, before volumes eased in anticipation of a possible compromise. If the 39% tariff proceeds, it could lead to U.S. retail price hikes of more than 20%, according to analysts at Jefferies led by James Grzinic. However, there remains a possibility that the measure won't be implemented. 'The one-week hiatus until implementation suggests this could be a negotiating tactic,' Grzinic said in a note. Swiss watch exports fell by nearly 10% in May, largely driven by a drop in shipments to the U.S. 'The rise of 'luxury fatigue,' a declining 'feel-good factor' from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook,' Vontobel analyst Jean-Philippe Bertschy wrote in a note last month.
Fashion Network
01-08-2025
- Business
- Fashion Network
Watches of Switzerland hit by Trump's new 39% Swiss import tariff
Shares of Watches of Switzerland Group Plc fell as much as 6% after U.S. President Donald Trump announced a 39% tariff on imports from Switzerland — one of the steepest rates introduced so far in the escalating trade war. The retailer, known for selling Rolex and other Swiss timepieces in the U.K. and U.S., has been hit hardest by the latest tariff measures. Financial markets in Switzerland were closed for a public holiday, initially sparing listed producers such as Richemont and Swatch Group AG from immediate share price reaction. Swiss watch exports had already surged earlier this spring, as Trump threatened a 31% levy. Importers rushed to bring in inventory ahead of potential tariffs, before volumes eased in anticipation of a possible compromise. If the 39% tariff proceeds, it could lead to U.S. retail price hikes of more than 20%, according to analysts at Jefferies led by James Grzinic. However, there remains a possibility that the measure won't be implemented. 'The one-week hiatus until implementation suggests this could be a negotiating tactic,' Grzinic said in a note. Swiss watch exports fell by nearly 10% in May, largely driven by a drop in shipments to the U.S. 'The rise of 'luxury fatigue,' a declining 'feel-good factor' from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook,' Vontobel analyst Jean-Philippe Bertschy wrote in a note last month.
Hindustan Times
01-08-2025
- Business
- Hindustan Times
Watches of Switzerland's shares fall 6% after Donald Trump slaps 39% tariff
Shares of Watches of Switzerland Group Plc fell as much as 6% after US President Donald Trump imposed a 39% tariff on imports from Switzerland, one of the steepest rates globally in his escalating trade war. The retailer, which sells Rolex and other Swiss timepieces in the UK and the US, bore the brunt of the latest tariff salvo. (File Image) The retailer, which sells Rolex and other Swiss timepieces in the UK and the US, bore the brunt of the latest tariff salvo. Financial markets in Switzerland were closed for a holiday, initially sparing listed producers such as Richemont and Swatch Group AG. Swiss watch exports had already been hit in advance of the latest news, surging in the spring when Trump threatened a 31% levy as importers in other markets tried to get in ahead of the tariffs, then easing on hopes of a settlement at a lower rate. If the 39% tariff goes ahead, it could require price increases of more than 20% in the US, according to Jefferies analysts led by James Grzinic. There's also a possibility that the tariffs don't go into effect. 'The one-week hiatus until implementation suggests this could be a negotiating tactic,' he said in a note. Swiss watch exports dropped by almost 10% in May led by a slump in shipments to the US. 'The rise of 'luxury fatigue,' a declining 'feel-good factor' from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook,' Vontobel analyst Jean-Philippe Bertschy said in a note last month.
Fashion Network
01-08-2025
- Business
- Fashion Network
Watches of Switzerland hit by Trump's new 39% Swiss import tariff
Shares of Watches of Switzerland Group Plc fell as much as 6% after U.S. President Donald Trump announced a 39% tariff on imports from Switzerland — one of the steepest rates introduced so far in the escalating trade war. The retailer, known for selling Rolex and other Swiss timepieces in the U.K. and U.S., has been hit hardest by the latest tariff measures. Financial markets in Switzerland were closed for a public holiday, initially sparing listed producers such as Richemont and Swatch Group AG from immediate share price reaction. Swiss watch exports had already surged earlier this spring, as Trump threatened a 31% levy. Importers rushed to bring in inventory ahead of potential tariffs, before volumes eased in anticipation of a possible compromise. If the 39% tariff proceeds, it could lead to U.S. retail price hikes of more than 20%, according to analysts at Jefferies led by James Grzinic. However, there remains a possibility that the measure won't be implemented. 'The one-week hiatus until implementation suggests this could be a negotiating tactic,' Grzinic said in a note. Swiss watch exports fell by nearly 10% in May, largely driven by a drop in shipments to the U.S. 'The rise of 'luxury fatigue,' a declining 'feel-good factor' from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook,' Vontobel analyst Jean-Philippe Bertschy wrote in a note last month.
Fashion Network
01-08-2025
- Business
- Fashion Network
Watches of Switzerland hit by Trump's new 39% Swiss import tariff
Shares of Watches of Switzerland Group Plc fell as much as 6% after U.S. President Donald Trump announced a 39% tariff on imports from Switzerland — one of the steepest rates introduced so far in the escalating trade war. The retailer, known for selling Rolex and other Swiss timepieces in the U.K. and U.S., has been hit hardest by the latest tariff measures. Financial markets in Switzerland were closed for a public holiday, initially sparing listed producers such as Richemont and Swatch Group AG from immediate share price reaction. Swiss watch exports had already surged earlier this spring, as Trump threatened a 31% levy. Importers rushed to bring in inventory ahead of potential tariffs, before volumes eased in anticipation of a possible compromise. If the 39% tariff proceeds, it could lead to U.S. retail price hikes of more than 20%, according to analysts at Jefferies led by James Grzinic. However, there remains a possibility that the measure won't be implemented. 'The one-week hiatus until implementation suggests this could be a negotiating tactic,' Grzinic said in a note. Swiss watch exports fell by nearly 10% in May, largely driven by a drop in shipments to the U.S. 'The rise of 'luxury fatigue,' a declining 'feel-good factor' from luxury purchases, and worsening consumer sentiment all contribute to a less optimistic outlook,' Vontobel analyst Jean-Philippe Bertschy wrote in a note last month.
