Swatch profit plunges almost 75%, hit by weakness in China

Shares fell 7% in early trading in Zurich. The disappointing results came alongside industry figures showing that Swiss watch exports declined for a fourth straight month in December. Overall exports fell 5.4% year-on-year, with China down 19%. The watch industry, as with the luxury sector, has struggled since an inflation spike led consumers to curb spending after a pandemic boom.

The company expects substantial improvements in sales and results in 2025, though demand in China will “continue to be rather restrained.”

“The watch sector remains in a very difficult situation, as the Swatch Group’s results show, said Jean-Philippe Bertschy, head of Swiss equity research at Vontobel.

Source: FORTUNE