Today 4
Daily Analysis – 2025-11-09
RolexRichemontWatches of SwitzerlandKeringTapestry
Luxury WatchesLuxury Fashion
United StatesChina
Swiss watch leaders including Rolex and Richemont sought a thaw in U.S. tariff tensions, even as Watches of Switzerland reported robust American demand despite price hikes. Kering deepened its China strategy via a creative residency with Shanghai Fashion Week, while Tapestry posted record Q1 revenue and raised its outlook, underscoring strength in accessible luxury. Watch tariff outcomes and China localization will be key swing factors for 2025 performance.
Key News for Today
Rolex and Richemont leaders discuss tariff relief prospects with the U.S. President amid 39% duties on Swiss imports.
Why it matters: Tariffs have squeezed margins and disrupted U.S. distribution for Swiss watchmakers; top leadership engagement could pave the way for easing costs.
Impact: If tariffs are reduced, pricing pressure and inventory distortions in the U.S. could ease, supporting sales and profitability for Swiss prestige watch brands.
What to follow: Watch for concrete milestones in U.S.-Switzerland negotiations, any interim tariff suspensions, and brand pricing moves in the U.S. market.
Watches of Switzerland beats expectations as U.S. demand stays strong despite price hikes, reaffirming guidance.
Why it matters: Shows resilient U.S. high-end demand and waitlist dynamics despite tariffs and inflation.
Impact: Sustained U.S. growth can offset tariff headwinds, bolster margin mix, and support store expansion.
What to follow: Track U.S. same-store sales, waitlist lengths for key brands, and any tariff rollbacks influencing pricing in H1 next year.
Kering partners with Shanghai Fashion Week to launch a China-focused creative residency, deepening local talent ties.
Why it matters: Strengthens Kering's pipeline for Chinese designers and advances brand localization in a key growth market.
Impact: Enhances cultural relevance and potential future brand collaborations, supporting long-term market share in China.
What to follow: Monitor selected designers, cross-brand collaborations, and how the program influences China sell-through and engagement metrics.
Tapestry posts record Q1 revenue and raises full-year outlook, led by double-digit growth at Coach.
Why it matters: Signals strong execution of the new Amplify plan and robust demand across regions, particularly Europe, China, and North America.
Impact: Upgraded guidance implies higher revenue and earnings trajectory, reinforcing competitive standing in accessible luxury.
What to follow: Watch gross margin sustainability, Gen Z customer acquisition trends, and regional growth cadence in upcoming quarters.
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