- Watch Group Swatch witnessed a decrease in sales by more than 12 % and its profits by 75 % in 2024.
- Its weak results were attributed to the “constantly difficult market mode” in China.
- The year 2024 was a bad year for luxury brands, from LVMH and KERING to the producers of champagne.
Swinch has reported weak sales and a significant decline in operating profits in 2024, due to poor demand from Chinese consumers.
The luxury watches group, which has Watch Watch Big League, such as Omega, Tissot and Longines, have witnessed its 12 % decrease and profits decreased around 75 % last year.
In the press statement, the profits, which were published on Thursday, the group published net sales of 6.7 billion francs, or 7.4 billion dollars. This was a 12.2 % decrease from 2023 when he got 7.9 billion francs.
Its operational profit decreased by about 75 % of about 1.2 billion francs in 2023 to 304 million francs in 2024.
The group attributed the results to “the constantly difficult market situation and weak demand for consumer goods in general in China.”
Swinch’s press statement said sales in China, including Hong Kong and Macau, slipped around 30 % in 2024.
He also added that there is a “significant decrease in the demand for consumer goods” in the markets of Southeast Asia, which it said was “dependent on Chinese tourists.”
However, it has been reported to stronger sales in other major markets, such as the United States, Japan, India and the Middle East. He said that in the United States, Tissot sales exceeded $ 100 million for the first time.
In general, luxury Swiss watch makers struggled with weak demand in 2024. In September, Bloomberg reported that Gerard Prairigao and Ulis Nardin, the Swiss -owned Swiss brands, turned into the government for financial support for low demand.
Meanwhile, the Rolex reselling market has also been cooled for more than two years after its rise in the Kofid era, in part due to the increase in the coming hours to the market.
Bad year for luxury goods
The watches are not the only luxury products that are affected by the flowing demand in China.
In 2024, Luxurious spending in general is stagnantThe major brands witnessed the low prices of their shares. KERING, the owner of Gucci, YSL and Balenciaga, saw his shares decreased by more than 40 % last year.
And luxurious bloc LVMH sales decreased by 3 % In the third quarter of 2024, partly due to the weak consumer confidence in China.
Swatch representatives did not respond to a comment from Business Insider, who is sent outside normal working hours.
