U.S. may cut tariffs on Swiss exports to 15%,... – 2025-11-12

Tariff relief talks for Swiss exports could ease pressure on luxury watchmakers in the U.S., while Geneva’s record-setting auctions underscore resilient top-end demand. Conversely, Valentino’s covenant breach-driven cash injection by Kering and Mayhoola and Farfetch’s revived securities suit highlight financing and governance overhangs in fashion and e-commerce.

Key News for Today

U.S. may cut tariffs on Swiss exports to 15%, easing near-term pressure on Swiss watchmakers’ U.S. pricing and sell-through.

Why it matters: Lower duties would reduce a severe headwind for Swiss watch exports to their largest market.

Impact: A cut from 39% to 15% could stabilize U.S. demand and margins for Swiss watch brands versus global rivals.

What to follow: Watch for White House approval and the effective date, then track U.S.-bound Swiss watch export volumes and price/mix in the following quarters.

Kering and Mayhoola to inject €100m into Valentino after a loan covenant breach, shoring up liquidity amid weakening profitability.

Why it matters: The cash infusion signals balance-sheet strain at Valentino and prolongs Kering’s turnaround timeline.

Impact: Short-term liquidity improves, but rising leverage and delayed full acquisition could weigh on valuation and near-term earnings.

What to follow: Monitor Valentino’s sales and EBITDA trajectory in 2025, any further equity injections or covenant resets, and updates to Kering’s acquisition timing.

Geneva auctions set a new watch-sale record as rare pieces drive a CHF 66.8m total and 100% sell-through.

Why it matters: Record auction demand at the very high end signals enduring appetite for rare horology despite macro uncertainty.

Impact: Strength at the secondary market can support halo effects for flagship watch maisons and pricing power on grail pieces.

What to follow: Track whether record momentum persists into spring auctions and if it translates into primary-market waitlists and price discipline.

Investors file an amended complaint to keep securities fraud claims against Farfetch alive post-restructuring.

Why it matters: Ongoing litigation prolongs governance and balance-sheet uncertainty for a major luxury e-commerce platform.

Impact: Potential legal costs and reputational drag could hinder merchant partnerships and marketplace GMV recovery.

What to follow: Watch the court’s response to the amended complaint, any settlement signals, and partner/brand retention and GMV trends under new ownership.

Daily Analysis – 2025-11-12

Key News for Today

U.S. may cut tariffs on Swiss exports to 15%, easing near-term pressure on Swiss watchmakers’ U.S. pricing and sell-through.

Kering and Mayhoola to inject €100m into Valentino after a loan covenant breach, shoring up liquidity amid weakening profitability.

Geneva auctions set a new watch-sale record as rare pieces drive a CHF 66.8m total and 100% sell-through.

Investors file an amended complaint to keep securities fraud claims against Farfetch alive post-restructuring.

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