Swatch Group Faces Market Challenges with Sales Drop

Swatch Group reported a significant decline in its 2024 financial results, with net profit plummeting 75% to CHF219 million and sales dropping 14.6% to CHF6.7 billion, missing analyst expectations. The downturn is largely attributed to weakened demand in China and Southeast Asia, exacerbated by foreign exchange impacts amounting to CHF192 million. Despite achieving record sales in the U.S., Japan, India, and the Middle East, Swatch's overall operating profit fell to CHF304 million, a quarter of the previous year's figure. Analysts criticized Swatch's financial communication and suggested the company might be taken private due to its poor market positioning. The Board of Directors proposed a reduced dividend of CHF4.50 per share, reflecting the challenging market conditions. Looking forward, Swatch remains optimistic about future growth, citing a robust brand presence and new product developments.