Swatch’s profit dipped more than 75 per cent while its sales decreased more than 12 per cent in FY24.
The company’s net sales fell to CHF6.7 billion ($7.3 billion) for the year. Its operating profit dropped from CHF1.19 billion in the prior year to CHF304 million, while net income was down from CHF890 million to CHF219 million.
The firm said it faced persistently difficult market situations and weak demand for consumer goods overall in China (including Hong Kong and Macau).
Meanwhile, it saw record sales and market share gains in the US, Japan, India and the Middle East, with the strongest growth for the Omega, Longines and Tissot brands.
Looking ahead, Swatch expects “substantial improvements” in sales, operating result and cash flow as this year promises “positive momentum worldwide”.
While demand in China will continue to be restrained, the habits and behaviour of Chinese consumers will continue to change, which will open up new opportunities for the strongly positioned brands, the company said.
In June, the Federation of the Swiss Watch Industry reported a decline in Swiss watch shipments due to reduced demand for premium and luxury timepieces in Mainland China and Hong Kong.