Swatch Group 2025 Results: A Year of Transition, Not Decline

At first glance, Swatch Group’s 2025 financials appear subdued. Net sales declined marginally, profits compressed sharply, and currency headwinds distorted headline performance. Yet a closer reading of the numbers reveals a more nuanced and arguably more important story: 2025 was a year of deliberate recalibration, with the Group prioritising long-term strength over short-term optics.

While net sales closed at CHF 6.28 billion, down 1.3% at constant exchange rates, the more telling indicator lay in the second half of the year. Sales accelerated by 4.7% in H2, with a particularly strong finish in the final quarter, where growth reached 7.2% across all price segments and regions. This momentum carried into January 2026, signalling that consumer demand has not disappeared but rather been deferred, resurfacing first where value, innovation, and brand clarity intersect.

The Watches & Jewelry segment, excluding Production, remained solidly profitable, closing the year with an operating margin of 9.5%. The modest contraction in margin was largely driven by elevated marketing investments in the latter half of the year, supporting an unusually dense calendar of product launches. Rather than defensive spending, this reflected a conscious effort to stimulate demand and reinforce brand relevance at a time when consumer confidence was returning unevenly across markets.

Geographically, the performance underscores a structural shift underway within the Group. The Americas delivered a record year, led by the United States, with sales rising nearly 20% in local currencies. Equally significant was the broad-based growth seen across emerging and high-potential markets. India, the Middle East, Mexico and Poland all recorded double-digit growth across every price segment, reinforcing the growing importance of diversified demand beyond China. In Europe and Asia, markets such as the United Kingdom, Germany, South Korea and Taiwan returned to growth in the second half, while China itself stabilised in the final quarter despite a reduced retail footprint.

Distribution strategy continues to be a cornerstone of Swatch Group’s long-term approach. In 2025, more than 47% of sales were generated directly through the Group’s own retail network, a milestone that underscores its commitment to controlling brand experience, pricing integrity and customer relationships. Online sales, meanwhile, surpassed the record levels seen during the Covid years across multiple regions and brands, highlighting the increasing maturity of digital channels as a core revenue driver rather than a tactical supplement.

Brand-level performance further reinforced the Group’s dual-track strategy of heritage-led innovation and commercial accessibility. Breguet generated strong momentum through its 250th anniversary, culminating in the Classique Souscription winning the Grand Prix de l’Aiguille d’Or at the GPHG, a powerful validation of its high-horology credentials. Blancpain underscored its technical authority with the launch of the Grande Double Sonnerie, while Omega focused on strengthening its core collections with the introduction of the fourth-generation Seamaster Planet Ocean. Tissot remained the Group’s volume anchor, gaining market share globally through innovation-led offerings such as solar-powered models, while Swatch continued to convert cultural relevance into commercial success through personalised watches and high-impact limited releases.

Where 2025 clearly tested the Group was in its Production segment. Reduced orders from both third-party clients and internal brands resulted in a strongly negative operating result. However, Swatch Group made a deliberate decision to maintain production capacity and safeguard jobs, opting not to implement redundancies or seek compensation for reduced working hours. This short-term financial sacrifice reflects a long-term conviction: preserving manufacturing capability is essential to respond quickly and effectively to the demand recovery already visible in the second half of the year.

Despite the sharp decline in reported net profit, the Group’s financial foundations remain exceptionally robust. Operating cash flow improved significantly, equity levels remain high, and liquidity continues to provide a substantial buffer. The decision to maintain dividend levels further signals confidence in the Group’s underlying resilience and forward outlook.

Viewed through an industry lens, Swatch Group’s 2025 performance is less a story of contraction and more one of preparation. As demand returns unevenly across regions and price segments, the Group enters 2026 with momentum, capacity and balance-sheet strength intact. For an industry emerging from a period of volatility, that combination may prove far more valuable than short-term profit preservation.