Swatch Group in the first half-year

The group’s net sales at constant exchange rates in the first half of 2025 were 7.1% below the previous year, on a comparable basis (excluding the eyewear business in the Middle East, transferred at the end of the previous year). The negative currency impact amounted to -3.3%, or CHF -113 million.

Watches & Jewellery
Weak consumption in China (including Hong Kong SAR and Macau SAR) and in the Southeast Asian markets, which are heavily dependent on Chinese tourists, continued to have a negative impact on sales and results. Wholesale business in Greater China declined by more than 30%, partly due to the closure of third-party stores, while the group’s own retail business performed slightly better with a 15% decline. This region’s share of the group’s total sales has fallen from 33% to 24% in the last 18 months. The group expects a slight improvement in consumption in China (including Hong Kong SAR and Macau SAR) in the second half of the year.

The USA, Mexico and Canada achieved double-digit growth. In particular, the Omega, Longines, Rado, Tissot and Hamilton brands gained market share, while Swatch also exceeded the very strong figures posted in the previous year. India recorded sales growth of over 20% on the previous year. Japan achieved sales at the level of the record year of 2024. Sales in the Middle East and Australia also developed very well. Switzerland suffered a slight drop in sales due to the very strong Swiss franc, while the other European markets closed at the level of the previous year.

More than 45% of the total sales in the Watches & Jewellery segment was generated by the group’s retail activities. With the exclusion of China, the brands increased retail sales significantly compared to the previous year in local currencies. Sales through e-commerce managed to achieve double-digit growth.

The group maintained its marketing investments to further boost the appeal of its brands. The group brands launched promising new products in the first half of 2025, thanks to the group’s industrial and innovative strength. Breguet’s special models to mark the brand’s 250^th anniversary are particularly worth mentioning. Omega had great success with the introduction of Aqua Terra for ladies in June. This collection is equipped with a completely new, ultra-thin mechanical Master Chronometer movement, a technological masterpiece. Tissot launched the PRC 100 Solar with its revolutionary photovoltaic dial. The jewellery segment with Harry Winston continued to develop well.

This summer, Swatch launched the ultimate in personalisation as a world first. Customers are able to communicate directly with Swatch’s artistic intelligence, called AI-DADA, to create their own Swatch watch. AI-DADA suggests designs inspired exclusively by a database of 40 years of Swatch design history, street painting, events, etc. Each watch will therefore be absolutely unique, according to the customer’s wishes, while preserving the Swatch DNA.

Production
The low level of orders in some cases, both from third parties and from the group brands, led to a decline in sales and strongly negative operating results in the Production segment. The group deliberately refrained from laying off its qualified personnel just to mitigate the financial impact. The production companies also did not introduce short-time working.

The Swatch Group’s high degree of vertical integration leads to losses in Production in the event of a sharp drop in sales. However, once the upswing sets in, the group benefits more strongly from it. Swatch Group remains committed to its strategic industrial alignment, namely the manufacture of high-volume products in Switzerland, which also benefits the luxury segment. In this domain, the group is at the forefront of innovation and technology. This is in the interest of the entire Swiss watch industry, including luxury.

Electronic Systems
Excellent results were reached in the Electronic Systems segment. Renata, Micro Crystal, and EM Microelectronic occupy a worldwide leading position in segments such as healthcare, mobility, battery management systems and miniaturised Bluetooth. In the first half of 2025, segment sales increased by 20.3% (at constant exchange rates).

Inventories
Inventories fell by CHF 221 million or 2.9% compared to December 2024, primarily in the category of finished Watches & Jewellery.

Personnel
The number of employees decreased by 1.9% in the first half of 2025 due to natural fluctuations and amounted to 31,852 persons at the end of June (December 2024: 32,477).

Outlook for the second half of 2025
The USA, Japan and India continue to have great growth potential. The group expects a further reduction of inventories at Chinese retailers and thus a recovery in orders. E-commerce in China continues to show positive signs of increased consumption. As a result, the group also expects production capacity utilisation to improve, notably driven by numerous new product launches in all price segments.

August 14, 2025