Swatch Group’s share price buoyant despite grim 2025 results

Early trading today saw Swatch Group AG’s share price rise by more than 7%, following the company’s announcement of increased sales in H2 of 2025.

The Group boasted of an “excellent performance in the second half of the year with sales growth of 4.7% at constant exchange rates,” and “strong acceleration in the fourth quarter with sales up 7.2% worldwide and across all price segments.”

Net sales for the year were CHF 6.28 billion, which is down 1.3% from 2024 at constant exchange rates, but 5.9% down based on current rates.

These currency effects (a weak dollar and a strong Swiss franc) had a significant impact on net profit, which was CHF 25 million, 89% down from the 2024 figure of CHF 219 million. 2024’s net margin of 3.3% became 0.4% last year.

The company’s operating profit in 2025 was CHF 135 million, down from CHF 304 million the year before. But within its watches and jewellery category (excluding production), operating profit was CHF 549 million.

It explains the negative performance in its production arm on the fact that it was “the deliberate decision to maintain production capacities and jobs, without resorting to compensation for reduced working hours.”

In terms of regions, Greater China posted 8.2% growth in the second half of the year, accelerating to 10.4% in Q4, while the Americas delivered nearly 20% growth. Europe returned to growth in H2, led by the UK and Germany.

But it was the company’s outlook for 2026 and its performance in the second half of last year that has investors and shareholders excited. “The very positive momentum in the second half of the year, and the acceleration in the last quarter, continued in January 2026 for all price segments,” the company said. 

“The Group expects very positive sales and volume developments for 2026, giving the opportunity to massively reduce losses in the Production segment and substantially improve the Group’s profitability.”