News Swatch Group Reports a Decline in 2024 Financial Results

Swatch Group has announced its financial results for 2024. The Swiss giant, which owns brands such as Blancpain, Breguet, Longines, Omega, Harry Winston, and Jaquet Droz, among others, holds a significant share of the luxury watch market. The group reported net sales of CHF 6,735 million, marking a decline of 12.2% at constant exchange rates (-14.6% at current exchange rates).

Operating profit dropped sharply to CHF 304 million, compared to CHF 1,191 million in 2023. Likewise, net income decreased to CHF 219 million, down from CHF 890 million in the previous year.

Despite these challenges, Swatch Group recorded notable sales growth and an increased market share in the United States, Japan, India, and the Middle East. Omega, Longines, and Tissot were among the top-performing brands. However, demand for luxury products remained weak in the Chinese market, including Hong Kong and Macau. China remains the world’s second-largest luxury market after the United States.

2025 Outlook: A Year of Recovery and Expansion

Swatch Group anticipates improved sales in 2025, driven by strong performance in December (excluding China) and the launch of a broad range of new models across all price segments. The group remains optimistic about maintaining positive global momentum, leveraging its strong industrial base and significant market presence.

Although demand in China is expected to remain relatively weak, evolving consumer behaviors could create new opportunities for the group’s leading brands. The company forecasts significant improvements in sales, operating results, and cash flow throughout 2025.

Competitor Performance: Richemont and LVMH

Richemont reported an 11% increase in total sales in its latest quarterly results. However, this growth was primarily driven by its jewelry maisons, such as Van Cleef & Arpels and Cartier, while its watch division saw an 8% decline, with quarterly sales totaling €867 million.

Meanwhile, luxury giant LVMH reported annual revenue of €84.7 billion in 2024, reflecting a 1% decline from €86.15 billion in 2023. The group's watch division recorded a 3% drop in sales during Q4. Overall, LVMH’s revenue grew by 1% to approximately €23.95 billion. Regionally, sales increased in the United States (+3%), Europe (+4%), and Japan (+8%), while Asia experienced a 10% decline, reflecting continued weakness in the Chinese market.