Swatch Group, the Swiss watchmaker, announced a 75% decline in net income for 2024, reaching 219 million Swiss francs ($242 million). Revenue also fell 12.2% to 6.74 billion Swiss francs ($7.43 billion). The company attributed the downturn to several factors, including a weakened global watch market, high exposure to China, and continued challenges in the Chinese market.
: The Swiss company’s 2024 net income dropped 75 percent to 219 million Swiss francs, or $242 million at current exchange rates. Revenue for the full year came in at 6.74 billion Swiss francs, or $7.43 billion, down 12.
2 percent against 2023’s figures at current exchange rates. It came in short of a consensus forecast of 6.98 billion Swiss francs, or $7.7 billion Swiss francs. Foreign exchange variations had a 192 million Swiss francs impact, while Swatch’s operating profit totaled 304 million Swiss francs, a quarter of what it was in 2023.In mid-morning trading, Swatch shares were down more than 5 percent to 153.45 Swiss francs, or $169.21 at current exchange rates.In a research note, Bernstein senior analyst Luca Solca described the fiscal year’s results as going “from bad to worse.” In his opinion, the group’s woes could be attributed as much to “a depressed global watch market after the post Covid watch binge” and high exposure to China as to the company maintaining high capacity levels that had an impact on operating leverage and “an abysmal financial market communication approach.” Solca further called Swatch’s stock “borderline uninvestable” given the firm’s lack of clear financial communication, and suggested the company may be taken private., annual exports of Swiss-made timepieces totaled 25.9 billion Swiss francs, a 2.8 percent dip compared with 2023 that reflected the Chinese slowdown.continued to attribute its decline in sales for the full year to the sharp drop in demand for consumer goods in Greater China, which includes the Hong Kong and Macau special administrative regions, as well as Southeast Asia, due to the drop in Chinese tourists. It noted its operating margin, which stood at 4.5 percent against 15.1 percent last year, was dragged down by the production segment, where “deliberately maintaining production capacities and jobs led to a strongly negative operating result.” Its watch and jewelry division ended the year with a 10.6 percent margin, recording 12.2 percent for the fourth quarter and 14.1 percent for December. Here too, deliberately maintained marketing investments such as those for the 2024 Paris Games, were highighted. Overall, the group stated it saw “record sales and market share gains” in the U.S., Japan, India and the Middle East. Omega, Longines and Tissot grew strongest, with the latter passing the $100-million mark in sales in the U.S. for the first time, Swatch noted. Meanwhile, the market situation remained “persistently difficult” with weak demand for consumer goods in Greater China. The area shank to 27 percent of the company’s total sales, against 33 percent in 2023.Its production division saw a decline in orders, both from third parties and Swatch Group brands, but said it would stick to its strategy of preserving production capacity and avoiding reduncies as it would “lead to a rapid improvement in the result for the segment in 2025, if sales improve.” “And all the more so since practically all markets worldwide are on course for growth, and issues with consumption are only being seen in the Greater China region,” it added. The outlook for 2025 was positive with expectations for substantial improvements with respect to sales, operating result and cash flow,” it stated. Swatch Group said the year promised “positive momentum worldwide,” buoyed by good sales reported in December outside of China and a raft of planned product releases. Although it expects demand in China to continue being “rather restrained,” it views the change in consumer habits and behaviors there as opening “plenty of new opportunities for the strongly positioned brands.”. We use vendors that may also process your information to help provide our services. // This site is protected by reCAPTCHA Enterprise and the Google. We use vendors that may also process your information to help provide our services. // This site is protected by reCAPTCHA Enterprise and the GoogleWWD and Women's Wear Daily are part of Penske Media Corporation. © 2025 Fairchild Publishing, LLC. All Rights Reserved.
SWATCH GROUP FINANCIAL RESULTS WATCH INDUSTRY CHINA MARKET DECLINE
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
US 75 Widening Project Nears Completion in Collin CountyThe Texas Department of Transportation is nearing the completion of a decades-long project to widen US 75 in Collin County, Texas. The $80 million project will add two lanes and one-way frontage roads between County Road 370 and County Road 375.
Read more »
Lenny Randle, controversial former MLB infielder, dead at 75Former Major League Baseball infielder Lenny Randle, who played for several teams over 12 years in the bigs, has died, the Seattle Mariners said. He was 75.
Read more »
Samsung's 75-inch The Frame 4K QLED TV on Sale for $2,000For a limited time, Samsung's 75-inch The Frame 4K QLED TV is available for $2,000 through Amazon, Best Buy, or directly from Samsung. This represents a $1,000 discount from its regular price of $3,000. The Frame is a unique QLED TV designed to look like a painting when not displaying content. It features a matte display with anti-reflection coating, 4K resolution, HDR support, and powerful Samsung picture processing.
Read more »
Lenny Randle, 'Most Interesting Man in Baseball,' Dies at 75Lenny Randle, a 12-season MLB player known for his colorful personality and memorable moments, has passed away at 75. Beyond his on-field stats, Randle was celebrated for his unique experiences, earning him the nickname 'The Most Interesting Man in Baseball'.
Read more »
Actor John Capodice, Known for 'Seinfeld' and 'Ace Ventura', Dies at 75John Capodice, a character actor with numerous credits in film and television, including roles in 'Seinfeld', 'Ace Ventura: Pet Detective', and 'General Hospital', has passed away at the age of 75.
Read more »
75 Hard Challenge: TikTok Trend or Too Strict?The 75 Hard challenge is gaining popularity on TikTok as people share their experiences. This 75-day program involves two 45-minute workouts daily (one outdoors), drinking over 3 liters of water, and reading 10 pages of a non-fiction book. While some find it transformative, experts caution that a more relaxed approach might be better suited for others.
Read more »