Keystone-SDA
The watchmaker Swatch is still in a clear decline. After a sharp decline in 2024, its sales continued to flex in the first half due “exclusively” to China withdrawal and its profit tumbled.
(Keystone-ATS) Swatch net turnover dropped by 10.4% between January and June to reach 3.1 billion francs, the Biennese company said in a statement.
As for net profit, it dived at 17 million, against 147 million at the same period in 2024.
In terms of profitability, the operating profit (EBIT) was divided by three, going to 68 million, against 204 million a year earlier. The related margin amounted to 2.2%, compared to 5.9% for the previous year.
These results are below the forecasts of the analysts consulted by the AWP agency, which tapped on revenues of 3.19 billion, an operating profit of 127 million and a related margin of 4%, as well as on a net profit of 100 million.
Strong increase in the USA
Regarding the prospects, the group says it anticipates “a new reduction in stocks among Chinese retailers and, therefore, a resumption of orders”. According to him, electronic commerce in China “continues to show positive signs of increasing consumption”. The United States, Japan and India continue to present high growth potential, he adds.
From January to May, the Swiss watchmaking export trend has remained positive, with growth of 1.1% at the end of May for a cumulative total of 10.8 billion francs, despite a net declining 10% in annual shift for May. In April, they increased by 18.2%, fired by the United States which imported en masse due to the threat of customs duties.
