Latest news with #SwatchGroup
Yahoo
6 days ago
- Business
- Yahoo
Swatch Group H1 Profits Down 88%, as Greater China Woes Continue
PARIS — China continues to weigh heavily on the Swatch Group, with the company posting Thursday an 88 percent slump in first-half net income to 17 million Swiss francs, or $21.1 million at current exchange rates. Revenue for the first six months of 2025 reached just over 3 billion Swiss francs, down 11.2 percent against first-half 2024. At constant exchange rates, there was a 7.1 percent year-on-year decrease. More from WWD May Swiss Watch Exports Slump After U.S. Tariff-led Surge Looming U.S. Tariffs Drove Swiss Watch Export Surge in April Swiss Watch Exports Return to Growth as China Slump Slows in March Foreign exchange variations continued to have a negative impact, leaving a 113 million Swiss franc dent in the semester. Meanwhile, the group's earnings before interest and taxes, or EBIT, fell to 68 million Swiss francs, a 67 percent tumble from what it was in the first half of 2024. Overall, the company's figures came short of consensus expectations of 3.2 billion Swiss francs in sales, but even more strikingly so in terms of EBIT and net profit, respectively 46.5 percent and 83 percent below consensus, according to a Bernstein research note. But Citi's Thomas Chauvet wondered if 'another miss' really mattered. Speculations on whether the group intends to go private are ongoing. In early-morning trading, Swatch shares were up 2.8 percent to 141 Swiss francs, or $175.38 at current exchange rates. They ended the day relatively flat at 140.40 Swiss francs. The Swiss watchmaking group continued to attribute a negative impact on sales and results to weak consumption 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 also said that the first half's 7.9 percent decline in sales came 'exclusively' from Greater China, which has fallen from making a third of Swatch's total sales to a 24 percent share in the past 18 months. Meanwhile, other regions 'reached the record years of 2023 and 2024 in local currencies,' according to the company. It described growth in the U.S., Mexico and Canada as double-digit; 'over 20 percent' year-on-year in India, and 'at the level of the record year of 2024' in Japan. The Middle East and Australia 'also developed very well' in terms of sales, Swatch added. The group also touted the 'impressive performance' of its Omega, Longines, Rado, Tissot, Hamilton and Swatch brands in the U.S., which recorded increases between 10 percent and 30 percent, but did not break out results by brand. Looking ahead to the second half of the year, the company said the U.S., Japan and India 'continue to have great growth potential.' It also saw 'first positive signs of improvement' in China, such as e-commerce showing signs of increased consumption and reduction of inventory at retailers, which it expects to lead to a recovery in order. For Bernstein senior analyst Luca Solca, 'this dovetails with what Richemont reported earlier this week, with China still being negative, but with the rate of decline moderating,' he wrote in a note. High hopes are also pinned on launches from the first half, such models marking Bréguet's 250th anniversary, Omega's Aqua Terra models for women embarking a new ultra-thin mechanical movement and a Tissot watch with a photovoltaic dial, as well as Swatch's upcoming introduction of a personalization service tapping 'artistic intelligence' to suggest designs inspired exclusively by its database of 40 years of designs and other creative endeavors. Published separately on Thursday by the Federation of the Swiss Watch Industry, first-half exports of Swiss-made timepieces remained flat, totaling 12.9 billion Swiss francs. For June, export sales stood at 2.2 billion Swiss francs, down 5.6 percent. Export of wristwatches slumped 9.6 percent in unit numbers and 6.3 percent in value in the month. In terms of segments by export price, most saw marked declines — averaging at 9.7 percent overall — save for the 500 Swiss franc to 3,000 Swiss francs bracket, which leapt 16 percent. While most major markets recorded sales declines, including a 17.6 percent tumble in the U.S. following the tariff-driven spike in April, China returned to growth with a 6.1 percent increase. The federation nonetheless cautioned that this apparent silver lining 'still represented a fraction of its level before the property crisis, with exports almost 30 percent lower than two years previously.' Barclays' Carole Madjo likewise said the bank 'remain cautious on the recovery of watch space in the short term.' Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Stuff.tv
6 days ago
- Entertainment
- Stuff.tv
Swatch teases an AI tool that could let you design your own MoonSwatch
Swatch is teasing a new service that could let you design your own watch using artificial intelligence – and as a fan of its previous customisation efforts, I'm intrigued. I've used the Swatch X You platform in the past and loved being able to pick out my own colours and patterns. The idea of doing the same for a MoonSwatch? Yes please – especially if it means unlocking colour combos we've never seen before. According to a financial update from Swatch Group, reported on by Watch Pro, the new service is set to launch this summer and is being described as a 'world first' in personalisation. At the heart of it is something called AI-DADA, a generative tool developed in-house by Swatch. The idea is that customers will be able to interact with this 'artistic intelligence' to create unique watch dials. It's trained on more than 40 years of Swatch design history, meaning anything it generates should still look and feel like a proper Swatch. 'Swatch will launch the ultimate in personalisation,' the report claims. So far, though, the company hasn't confirmed whether this AI tool will work across all collections, including the MoonSwatch. In fact, it might not involve the MoonSwatch at all. This could be a brand-new model created specifically for the AI-DADA platform. Still, if MoonSwatch personalisation is on the table, it could mark a shift in strategy. Rather than releasing endless new editions like the Mission to Moonshine models, Mission to Earthphase, or Snoopy collabs, Swatch could hand the creative power over to fans themselves. There's no word on pricing, but if it mirrors the Swatch X You programme, we could expect a small premium over the standard model. Personally, I'd love a MoonSwatch inspired by the neon of the 1990s Grand Prix Chronograph – bright pinks, greens and yellows on a black dial. Sign me up! Liked this? AVI-8 and Peanuts team up for the Snoopy Flying Ace watch collection, and I want all five
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
Swatch profits plunge on weak China sales
Sales to Chinese wholesalers fell by 30% during the first half of the year and were down by 15% in Swatch's retail stores.(EPA Images pic) ZURICH : Swatch Group said today that weak sales in China wiped out growth elsewhere in the first half of the year for the world's top watch company, leaving it barely profitable. Net sales fell 11.2% to CHF3.1 billion (US$3.8 billion), while net profit plunged 88% to CHF17 million. 'The decline in sales is exclusively attributable to China,' the company said, adding that sales in other regions reached record levels set in 2023 and 2024. Besides its eponymous Swatch watches, the company owns high-end brands such as Omega, Longines and Tissot, and like other luxury firms the demand of Chinese consumers for Western goods has made it a top market. However, Swatch said the region's share in total sales have fallen from a third to just under a quarter as China's economy has struggled, with a real estate crisis hampering consumption by many households. Sales to Chinese wholesalers fell by 30% during the first half of the year and were down by 15% in Swatch's retail stores. However, Swatch said it has seen the first signs of improvement in China and expects an improved market environment in the second half of the year. Meanwhile, first half sales growth reached double digits in North America, India, Turkey, Middle East and Australia. 'The US, Japan and India continue to have great growth potential,' it said, adding it expects utilisation of its production capacity to rise in the second half of the year thanks to new product launches.
Fashion Network
7 days ago
- Business
- Fashion Network
Swatch UK results show sector facing tough market
Swatch Group on Thursday reported its half-year global results showing the watch market is still tough. And it has also filed its UK-specific accounts for 2024 highlighting the challenges in the British market. The company said that British turnover from continuing operations dropped 11% to £193.768 million and profits fell as well. In fact profit before tax was down as much as 33% at £7.516 million for the year. That was due both to the turnover fall and an increase in the cost of sales and distribution/administrative expenses. Those expenses increased 6% for the year. Other figures in the accounts included operating profit from continuing operations falling to £12.365 million from £15.819 million and its net profit for the financial year dropping sharply to £3.791 million from £8.315 million. Swatch may have another tough year in 2025 too as it has already said that the increase in employers' National Insurance contributions in the UK that began in April will increase its costs, and the results from its operations globally have also shown that the market hasn't become easier for watch specialists. That's something Richemont 's results showed this week too with the Swiss luxury giant's Specialist Watchmakers segment being its worst performer in the latest year. Looking back at the UK specifically, in the accounts filing Swatch said it's 'maintaining the strength of [its] brands through new and innovative products, strategic advertising and maintaining strong relationships with its customers'.
Fashion Network
7 days ago
- Business
- Fashion Network
Swatch UK results show sector facing tough market
Swatch Group on Thursday reported its half-year global results showing the watch market is still tough. And it has also filed its UK-specific accounts for 2024 highlighting the challenges in the British market. The company said that British turnover from continuing operations dropped 11% to £193.768 million and profits fell as well. In fact profit before tax was down as much as 33% at £7.516 million for the year. That was due both to the turnover fall and an increase in the cost of sales and distribution/administrative expenses. Those expenses increased 6% for the year. Other figures in the accounts included operating profit from continuing operations falling to £12.365 million from £15.819 million and its net profit for the financial year dropping sharply to £3.791 million from £8.315 million. Swatch may have another tough year in 2025 too as it has already said that the increase in employers' National Insurance contributions in the UK that began in April will increase its costs, and the results from its operations globally have also shown that the market hasn't become easier for watch specialists. That's something Richemont 's results showed this week too with the Swiss luxury giant's Specialist Watchmakers segment being its worst performer in the latest year. Looking back at the UK specifically, in the accounts filing Swatch said it's 'maintaining the strength of [its] brands through new and innovative products, strategic advertising and maintaining strong relationships with its customers'.
