Jan 29 - Swatch's sales grew 4.7% at constant exchange rates in the second half of 2025, benefiting from a strong acceleration in the fourth quarter, the company said on Friday. The maker of brands
Swatch flags positive sales momentum, lifting shares
Swatch Group's Sales Performance and Market Reaction
By Bernadette Hogg and Alessandro Parodi
Sales Growth Across Regions
Jan 30 (Reuters) - Swatch Group said on Friday its sales momentum was picking up in the last quarter of 2025 and into 2026, sending its shares up over 7% despite its full-year operating profit missing market expectations.
Impact of Tariffs on Exports
The Swiss watchmaker said its sales grew by 4.7% at constant exchange rates in the second half of last year, and accelerated in all price segments in January leading to expectations of positive sales and volume developments this year.
Analysts' Insights on Future Trends
Including currency movements, sales were down 6.8%
The strong underlying sales figures, alongside a decision to maintain a stable dividend, bumped the Zurich-listed shares in early Friday trade, with a Bernstein analyst pointing to hopes of recovery for the stock which is trading near 17-year lows.
Shares in the company pared some of their initial gains to trade up 6% at 1000GMT.
"As we had hoped, Swatch Group was thus able to benefit from a recovery in the watch industry," an analyst at Zuercher Kantonalbank said.
Swiss watch exports fell year-on-year in 2025 but were up in December, the Federation of the Swiss Watch Industry said on Thursday.
The company added that its sales decline in China, Hong Kong and Macau was lower in the second half, with momentum picking up.
Excluding those regions and the production segment, sales were up 3.4% for the year and 8.2% in the second half. Its Americas region delivered almost 20% sales growth in 2025, expanding steadily despite U.S. tariffs.
Swiss exports to the U.S. faced a 39% tariff from August 7 until November 14, when the rate dropped to 15%, easing pressure on Swiss businesses that had faced Europe's highest U.S. duties.
"We believe that the CEO's bullish tone on current trends is likely to be taken well by the market, despite providing likely little read for 2026 profits", UBS analysts said in a note to clients.
Swatch delivered full-year earnings before interest and tax of 135 million Swiss francs ($176 million), missing the 201 million francs forecast by analysts polled by LSEG. Operating margin declined to 2.1% from 4.5% in 2024, well below the 3.4% analysts had expected.
The company said earnings were held back by low capacity utilisation and its decision to keep factories running to prepare for future demand.
($1 = 0.7688 Swiss francs)
(Reporting by Bernadette Hogg and Alessandro Parodi. Editing by Matt Scuffham and Mark Potter)
