Swatch profit plunges almost 75%, hit by weakness in China
Swatch Group AG profit fell sharply as the watch industry continues to struggle with weakness in Chinese consumer demand.
Operating profit declined 75% to 304 million Swiss francs ($335 million) in 2024, below analyst estimates, it said in a statement Thursday. Sales dropped 12.2%.
Shares fell 7% in early trading in Zurich. The disappointing results came alongside industry figures showing that Swiss watch exports declined for a fourth straight month in December. Overall exports fell 5.4% year-on-year, with China down 19%. The watch industry, as with the luxury sector, has struggled since an inflation spike led consumers to curb spending after a pandemic boom.
The company expects substantial improvements in sales and results in 2025, though demand in China will “continue to be rather restrained.”
Source: FORTUNE