Swatch suffers massive profit slump in 2025
Keystone-SDA
Swiss watch manufacturer Swatch suffered a near 90% slump in net profits last year as sales in Asia plunged, particularly in China.
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The group reported net profits of CHF25 million, down from CHF219 million in 2024.
+ Chinese slump hits luxury watch industry
Sales in 2025 fell by 5.9% compared to the previous year to CHF6.28 billion. Adjusted for currency effects and compared to the previous year, sales fell by 1.3%. Analysts had expected an average organic decline of 5%.
Operating profit EBIT slumped to CHF135 million from CHF304 million in the previous year. This resulted in a margin of just 2.1% after 4.5% in 2024, leaving a net profit of CHF25 million (-89%). Analysts had expected an average of CHF127 million.
Despite the weak results, Swatch intends to pay shareholders a dividend of CHF4.50 per bearer share, unchanged from the previous year. The analyst community had expected only CHF3.43.
In its outlook, Swatch is confident about the further course of business: the very positive momentum of the second half of the year and the acceleration in the last quarter would have continued in all price segments in January 2026, it said.
The group expects very positive sales and volume growth in 2026. Profitability is expected to improve substantially.
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Swatch Group sees results plummet in 2024
Translated from German by AI/mga
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