Swatch Group on Thursday reported its half-year global results showing the watch market is still tough. And it has also filed its UK-specific accounts for 2024 highlighting the challenges in the British market.
Swatch
The company said that British turnover from continuing operations dropped 11% to £193.768 million and profits fell as well. In fact profit before tax was down as much as 33% at £7.516 million for the year. That was due both to the turnover fall and an increase in the cost of sales and distribution/administrative expenses. Those expenses increased 6% for the year.
Other figures in the accounts included operating profit from continuing operations falling to £12.365 million from £15.819 million and its net profit for the financial year dropping sharply to £3.791 million from £8.315 million.
Swatch may have another tough year in 2025 too as it has already said that the increase in employers’ National Insurance contributions in the UK that began in April will increase its costs, and the results from its operations globally have also shown that the market hasn’t become easier for watch specialists. That’s something Richemont’s results showed this week too with the Swiss luxury giant’s Specialist Watchmakers segment being its worst performer in the latest year.
Looking back at the UK specifically, in the accounts filing Swatch said it’s “maintaining the strength of [its] brands through new and innovative products, strategic advertising and maintaining strong relationships with its customers”.
