Swatch Group Reports a 14.3% sales decline for Q1 & Q2 2024

Topline results

The Swiss conglomerate behind Omega, Longines, and Tissot, reported a sales drop to CHF 3,445 million, marking a 14.3% decrease from this same period last year. This decline essentially means that their operating profit fell to CHF 204 million from CHF 686 million achieved in the previous year. 

Slowdown in Asia and Global Swiss Watch Industry Overview

The company attributes the decline to reduced demand for luxury goods in Greater China, although the Swatch brand itself saw increased sales in the region.The Chinese market is particularly pressured by economic uncertainties and lower consumer confidence, contributing to weaker-than-expected economic growth in the second quarter.

According to the Federation of the Swiss Watch Industry, global Swiss watch exports fell by 2.5% in the first five months of 2024, with significant declines in China (18.2%) and Hong Kong (19.2%). Despite these challenges, Swatch Group's sales outside of China remained at 2023 record levels in local currencies.

While luxury brands like Breguet, Blancpain, and Omega were hit hard, Tissot and Longines maintained strong positions. As expected before reading this report collaborations such as Swatch x Omega and Swatch x Blancpain also continued to perform well.

Future outlook

Swatch Group anticipates an improvement in Q4 2024 if the challenging conditions in China and South East Asia persist.

Moreover, the group will be implementing a cost-cutting program tthat should positively impact future financial results.

If you want to learn more details you can check the full report at www.swatchgroup.com.