Zurich (Reuters) – The Swiss watchmaker Swatch Group announced Thursday a drop in turnover and profit in 2024, improvements in the United States and Japan having not been enough to compensate for a strong slowdown in China .
The manufacturer of Omega watches, Longines and Tissot said that its annual sales fell 14.6% to 6.74 billion Swiss francs (7.14 billion euros), missing the 6.95 billion francs expected by Analysts in a visible alpha consensus.
The company’s net profit, which also manufactures Swatch plastic watches, plunged 219 million francs, compared to 890 million francs the previous year, below the expectations of a profit of 365 million francs.
Swatch said that market conditions remain difficult and that the demand for consumer goods is low in China. Its sales in Expanded China and Southeast Asia, which depend strongly on Chinese tourism, have dropped by 30%.
These figures reflect the persistent difficulties encountered by many luxury companies in China, where consumers have reduced costly purchases due to the country’s economic slowdown.
Swatch is highly exposed to China, Hong Kong and Macao, a region where it achieved 27% of its turnover, against 33% the previous year.
(Written, Elena Smirnova, edited by Augustin Turpin)
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