Swatch
Note: This is a daily stock update and the information stands true as of 30/01/25, 09:00 CET.
Company update:
Net sales declined by 12.2% at constant exchange rates to CHF 6.7bn (vs. consensus of -9%). The decline was primarily driven by a sharp drop in demand in Greater China and Southeast Asia, where sales fell 30% overall.
Operating profit came in at CHF 304m, reflecting an operating margin of 4.5% (vs. 15.1% in FY23 / consensus of 8%). The company attributed the significant decline in profitability to its strategy of maintaining production capacities and avoiding layoffs despite the slowdown.
Guidance 25 : Swatch expects positive top-line, profit, and cash flow development in FY25, citing encouraging sales momentum in December.
Expert opinion:
Recent earnings from Richemont and Burberry have positively surprised the market, while LVMH slightly underperformed and Swatch significantly missed expectations. Despite some brands showing strength, we advise a cautious stance on luxury investments, as it may be too early to re-enter the sector. Continued market analysis will be necessary to gauge future opportunities.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company update:
Net sales declined by 12.2% at constant exchange rates to CHF 6.7bn (vs. consensus of -9%). The decline was primarily driven by a sharp drop in demand in Greater China and Southeast Asia, where sales fell 30% overall.
Operating profit came in at CHF 304m, reflecting an operating margin of 4.5% (vs. 15.1% in FY23 / consensus of 8%). The company attributed the significant decline in profitability to its strategy of maintaining production capacities and avoiding layoffs despite the slowdown.
Guidance 25 : Swatch expects positive top-line, profit, and cash flow development in FY25, citing encouraging sales momentum in December.
Expert opinion:
Recent earnings from Richemont and Burberry have positively surprised the market, while LVMH slightly underperformed and Swatch significantly missed expectations. Despite some brands showing strength, we advise a cautious stance on luxury investments, as it may be too early to re-enter the sector. Continued market analysis will be necessary to gauge future opportunities.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Solid start of 2025 with signs of recovery in key markets.