Swatch Group presents its key figures for 2024

At constant exchange rates, Group net sales were 12.2% (CHF 6.735 million) below the previous year. The negative currency impact amounted to CHF 192 million or 2.4%.

Watches & Jewellery
The Watches & Jewellery segment (without Production) ended the 2024 reporting year with a considerable decline in sales and a correspondingly low operating margin of 10.6% (previous year: 17.2%), which was partly attributable to the deliberate maintenance of marketing investments, such as for the Olympic Games in Paris.

The huge drop in demand for consumer goods in China (including Hong Kong SAR and Macau SAR) and in the Southeast Asian markets, which are heavily dependent on Chinese tourists, persisted in the second half of 2024. Sales in these key regions for the Group’s brands declined by around 30% overall. The share of total sales in China (including Hong Kong SAR and Macau SAR) amounted to 27%, in comparison with 33% in the previous year.

The key markets of the USA, Japan, India and the Middle East achieved record sales in their local currencies. In the USA, the largest market for watches before China, Omega, Longines and Swatch performed very well, while Tissot exceeded the USD 100 million in sales mark for the first time. In Japan, the third-largest export market for Swiss watches, high double-digit growth was achieved, with Harry Winston, Omega, Longines and Tissot in particular able to strengthen their positions. The Swatch brand is continuing on a high in Japan. The Rivoli Group achieved considerable sales growth and the new distribution company in Saudi Arabia performed very well. The retail share of the Watches & Jewellery segment’s total sales rose to 47%.

The prestige brands Breguet and Blancpain were particularly affected by the challenging market environment. Harry Winston and Omega, on the other hand, performed well, as did the brands in the medium price segments with Rado, Longines and Tissot. Demand for the MoonSwatch and Scuba Fifty Fathoms Swatch remained very high throughout the entire year thanks to various market launches and improved even further in the second half of the year due to the success of the new Mission to the Super Blue Moonphase and Mission to Earthphase models.

Sales in December were very positive, particularly for the Omega, Tissot and Hamilton brands with double-digit growth, while sales for brands in the prestige segment were still below those of the previous year. The USA, Canada, as well as certain European countries such as the UK, the Netherlands or Belgium, exceeded the previous year’s sales by 20% or more.

Production
Significantly lower sales in the Production segment, resulting from a decline in orders, both from third parties and from the Group’s own brands, led to a strongly negative operating result for the segment. The Group is sticking to its strategy of maintaining production capacities and avoiding redundancies. This will 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.

Electronic Systems
Sales rose in the second half of the year, reaching the previous year’s level. For the year as a whole, the segment reported sales of CHF 330 million (-7.0% at constant exchange rates, -8.1% at current rates). Operating profit amounted to CHF 12 million (previous year: CHF 27 million). Orders at the end of the year were up 25% year on year.

Investments
The Group increased its investments in its own retail businesses and pursued major projects relating to production buildings, such as for EM Microelectronic-Marin or ETA. All in all, CHF 568 million was invested (previous year: CHF 803 million).

Inventories
In the second half of the year, inventories fell by roughly 1%, in comparison with the 5.5% rise seen in the first half of the year. Over the year as a whole, these rose by CHF 332 million.

Research and Development
Intensive research and development activities led to 196 new patent applications in 2024 (previous year: 188).

Personnel
The number of employees decreased by 2.1% due to natural fluctuations. Following the consolidation of the successful Rivoli Group’s eyewear business with a partner in the Middle East, 428 employees were transferred to a new company in which Rivoli has a minority interest. The number of employees at the end of the year amounted to 32,477 people (previous year: 33,602).

Outlook 2025
2025 promises positive momentum worldwide. The Group’s extensive industrial basis, as well as its strong brand presence, with many exciting new products across all price segments, mean that a positive performance in 2025 can be expected.

Demand in China will continue to be rather restrained. The expectation is that the habits and behaviour of Chinese consumers will continue to change, which will open up plenty of new opportunities for strongly positioned brands.

For 2025, Swatch Group expects substantial improvements with respect to sales, operating result and cash flow.

February 13, 2025