Swatch Group expects business in China to pick up in the second half as it recorded a slight improvement in orders from retailers looking to refill purchased stock.
“In China, there are first positive signs of improvement, particularly in e-commerce and the reduction of inventories at retailers,” the company, which owns brands including Omega, Tissot and Harry Winston, said last week. “The group therefore expects an improved market environment in the greater China region in the second half of the year [and] a further reduction of inventories at Chinese retailers and thus a recovery in orders. E-commerce in China continues to show positive signs of increased consumption.”
However, even as China began to recover, revenue dropped 11% year on year to CHF 3.06 billion ($3.81 billion) for the first half of 2025, the Swiss conglomerate reported. Sales slipped 7% at constant exchange rates, with currency fluctuation affecting the final figures. The sales decline was “exclusively attributable” to China and Hong Kong and Macau, which now make up 24%, down from 33% 18 months ago, the company explained. Meanwhile, sales in other regions reached record levels.
Sales of jewelry and watches declined 13% to CHF 2.89 billion ($3.6 billion). Other revenue came from electronic systems and corporate activities. Group net profit plunged 88% to CHF 17 million ($21.2 million).
The company plans to launch an exclusive personalization feature, which it believes will increase sales. The product, called AI-DADA, allows customers to communicate directly with Swatch’s artistic artificial intelligence to create their own Swatch watch, yielding unique pieces, the company added.
Image: A Harry Winston store in Dusseldorf, Germany. (Shutterstock)