Swatch Group: half-year report 2024

The Swatch Group releases its half-year report 2024 (January-June).

The Swatch Group released its financial report for the first six months of 2024.

During this period, at constant exchange rates, the Group's net sales reached CHF 3,445 million, marking a -14.3% decrease compared to the previous year (-10.7% at current rates), with currency effects accounting for a CHF -145 million impact.

Operating profit stood at CHF 204 million with a margin of 5.9%, and net income was CHF 147 million with a margin of 4.3%. 

The decline in sales was primarily driven by reduced demand for luxury goods in China, including Hong Kong SAR and Macau SAR. The Swatch brand defied the trend, increasing its sales in China by 10%. 

Sales outside China matched the record levels of 2023 in local currencies and were 5.6% higher than in the first half of 2022, at constant exchange rates. 

The Group's operating margin rose to over 15% in June, signaling a positive outlook for the second half of 2024.

Despite challenges in the Chinese market, the Group sees untapped potential in China and anticipates strong growth in Japan and the USA, supported by investments in its retail network. 

The Omega brand will benefit from a global media presence as the official timekeeper of the Olympic Games in Paris.

The Group expects the situation to improve strongly in the second half of the year. swatchgroup.com