The Swatch Group Ag ( (SWGAF) ) has released its Q2 earnings. Here is a breakdown of the information The Swatch Group Ag presented to its investors.
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The Swatch Group AG, a leading player in the global watch and jewelry industry, is renowned for its diverse brand portfolio and innovative designs, catering to various market segments from luxury to affordable timepieces.
In its half-year report for 2025, The Swatch Group AG reported a decline in net sales to CHF 3,059 million, marking a 7.1% decrease at constant exchange rates compared to the previous year. The company’s financial performance was significantly impacted by weak sales in China, although other regions such as North America and India showed robust growth.
Key financial metrics revealed a challenging period for the company, with operating profit dropping to CHF 68 million from CHF 204 million the previous year, and net income falling to CHF 17 million. Despite these setbacks, the company maintained a strong operating cash flow of CHF 180 million, doubling from the previous year. The Watches & Jewelry segment saw a notable operating margin of 10.1%, while the Electronic Systems segment achieved a 20.3% sales increase.
The Swatch Group remains optimistic about the second half of 2025, anticipating improvements in the Chinese market and continued growth in the USA, Japan, and India. The company plans to enhance its product offerings with new launches and leverage e-commerce growth, particularly in China, to boost sales and production capacity utilization.