Swatch, the renowned Swiss watchmaker, has reported a challenging first half of the year, with sales declining more then anticipated and resulting in a substantially reduced profit.
The group, known for its popular brands including Omega, Longines, and Tissot, announced sales of 3.06 billion for the initial six months of the year. This figure represents an 11.2 percent decrease compared to the same period in the previous year. Excluding currency fluctuations, sales were down by 7.9 percent. this performance fell short of the average analyst expectation, which had predicted a decline of 4.2 percent.
Focus on the Asian Market
swatch attributes the significant drop in sales primarily to its business operations in the Greater China region. Weak consumer demand in China, Hong Kong, and Macau, along with the Southeast Asian markets heavily reliant on Chinese tourism, continued to negatively impact both sales and overall financial results. The company specifically noted a decline of over 30 percent in wholesale business within the Greater China area,partly due to the closure of third-party retail outlets.
Despite these headwinds, Swatch has identified early positive indicators, notably in its e-commerce channels and a reduction in dealer inventory levels. Based on these developments, Swatch anticipates an improvement in the market environment across the Greater China region in the latter half of 2025.
