Swiss watch exports dropped further in June in the US, Japan and Hong Kong following the spike in April in response to expected tariff increases.
Shipments of luxury timepieces fell 6% to CHF 2.15 billion ($2.67 billion) for the month, the Federation of the Swiss Watch Industry reported Thursday. The dip comes after a 10% drop in May.
“Following the sharp rise in April, the fall in the US market was lower than in the previous month, but continued to have a significant impact on the overall result,” the federation commented. “The declines recorded in Japan and Hong Kong also contributed to the negative trend. The United Kingdom rose to third place in the ranking…. China recorded growth, supported by a favorable base effect.”
Exports to the US were down 18% to CHF 310.3 million ($385.9 million), while shipments to China rose 6% to CHF 172.8 million ($214.9 million). Orders to the United Kingdom were mainly stable, with a 0.1% decrease to CHF 155.9 million ($193.9 million). Supply to Japan slipped 11% to CHF 155.6 million ($193.5 million), while exports to Hong Kong also slid 11% to CHF 147.7 million ($183.7 million).
Timepieces that cost between CHF 500 ($623) and CHF 3,000 ($3,735) were the only price range to see growth, increasing 16%. Watches valued above CHF 3,000 declined 9%, while those worth between CHF 200 ($249) to CHF 500 plunged 24%. Watches priced below CHF 200 were down 11%.
From January to June, exports were generally stable, slipping 0.1% year on year to CHF 12.91 billion ($16.07 billion). However, the sector “could fall more markedly should the downward trend continue,” the federation explained.
Image: A Swiss-watch display. (Shutterstock)