The Swatch Group Ltd

Latest Results (03.10.2025):

The Swatch Group Ltd reported its half-year financial results for 2025, experiencing a decline in net sales and profitability compared to the previous year. While the Chinese market faced significant challenges, the company saw robust growth in regions such as North America, India, and the Middle East, supported by strong brand performance and innovative product launches.

Net Sales Decline

For the first half of 2025, The Swatch Group Ltd achieved net sales of CHF 3,059 million, a decrease of 7.1% compared to the previous year at constant exchange rates. The decline was primarily driven by a 30% drop in the Greater China region.

Reduced Profitability

Operating profit fell to CHF 68 million from CHF 204 million in the previous year, resulting in an operating margin of 2.2%. Net income also decreased significantly to CHF 17 million from CHF 147 million, with a net margin of 0.6%.

Strong Regional Growth

Despite the downturn in China, The Swatch Group Ltd saw double-digit sales growth in North America, India, Turkey, the Middle East, and Australia. Key brands like Omega, Longines, Rado, Tissot, Hamilton, and Swatch reported sales increases ranging from 10% to 30% in the USA.

Production Segment Challenges

The Production segment reported a strongly negative operating result due to maintained production capacities and employment levels in Switzerland. The Group's high verticalization led to losses amid declining sales, although it positions the company for stronger performance when demand recovers.

Positive Outlook and Innovation

Signs of improvement in the Greater China region, particularly in e-commerce and inventory reductions, suggest a better market environment in the second half of 2025. Additionally, Swatch plans to launch an AI-driven personalization concept, enhancing customer engagement and product uniqueness.