Swatch Group’s revenue fell in 2024 as demand in China and Hong Kong remained weak, overshadowing strong sales in other key markets.
Revenue dropped 15% to CHF 6.74 billion ($7.42 billion) for the year, the luxury group — which owns Harry Winston, Omega and Tissot — reported last week. Sales of jewelry and watches, the company’s dominant category, slipped 15% to CHF 6.42 billion ($7.07 billion). Its electronics division accounted for most of the remainder. Net earnings plunged 75% to CHF 219 million ($241.4 million).
There was a “persistently difficult market situation and weak demand for consumer goods overall in China,” the company noted. “The huge drop in demand for consumer goods in China, including Hong Kong and Macau, 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…declined by around 30% overall.”
The slump in China and Hong Kong outweighed “record” sales in other important markets, including the US, Japan, India and the Middle East, Swatch said. The company’s brands, such as Omega, Longines and Swatch, performed “very well” in the US, while Tissot exceeded the $100 million in sales mark for the firs time. In Japan, the third-largest market after the US and China, saw high double-digit growth, with strength in the Harry Winston, Omega, Longines and Tissot brands.
Demand for the group’s “prestige brands” of Breguet and Blancpain were “particularly affected by the challenging market environment,” the luxury group added.
Image: A Swatch store in Guangzhou, China. (Shutterstock)
