Swatch flags positive sales momentum, lifting shares

Published Fri, Jan 30, 2026 · 07:17 PM

Swatch Group said on Friday (Jan 30) its sales momentum was picking up in the last quarter of 2025 and into 2026, sending its shares up over 7 per cent despite its full-year operating profit missing market expectations.

The Swiss watchmaker said its sales grew by 4.7 per cent at constant exchange rates in the second half of last year, and accelerated in all price segments in January leading to expectations of positive sales and volume developments this year.

Including currency movements, sales were down 6.8 per cent.

The strong underlying sales figures, alongside a decision to maintain a stable dividend, bumped the Zurich-listed shares in early Friday trade, with a Bernstein analyst pointing to hopes of recovery for the stock which is trading near 17-year lows.

Shares in the company pared some of their initial gains to trade up 6 per cent at 1000GMT.

“As we had hoped, Swatch Group was thus able to benefit from a recovery in the watch industry,” an analyst at Zuercher Kantonalbank said.

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Swiss watch exports fell year on year in 2025 but were up in December, the Federation of the Swiss Watch Industry said on Thursday.

The company added that its sales decline in China, Hong Kong and Macau was lower in the second half, with momentum picking up.

Excluding those regions and the production segment, sales were up 3.4 per cent for the year and 8.2 per cent in the second half. Its Americas region delivered almost 20 per cent sales growth in 2025, expanding steadily despite US tariffs.

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Swiss exports to the US faced a 39 per cent tariff from Aug 7 until Nov 14, when the rate dropped to 15 per cent, easing pressure on Swiss businesses that had faced Europe’s highest US duties.

“We believe that the CEO’s bullish tone on current trends is likely to be taken well by the market, despite providing likely little read for 2026 profits”, UBS analysts said in a note to clients.

Swatch delivered full-year earnings before interest and tax of 135 million Swiss francs (S$222.7 million), missing the 201 million francs forecast by analysts polled by LSEG. Operating margin declined to 2.1 per cent from 4.5 per cent in 2024, well below the 3.4 per cent analysts had expected.

The company said earnings were held back by low capacity utilisation and its decision to keep factories running to prepare for future demand. REUTERS

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