Finance
Swatch misses expectations for full year earnings
Published by Global Banking and Finance Review
Posted on January 30, 2026
2 min readLast updated: January 30, 2026
Tags:Sales growth
Quick Summary
Swatch's sales rose 4.7% in H2 2025, with strong Q4 growth, reaching 6.28 billion Swiss francs, surpassing analyst expectations.
Swatch misses expectations for full year earnings
Swatch Group's Financial Performance Overview
By Bernadette Hogg and Alessandro Parodi
Earnings and Operating Margin
Jan 30 (Reuters) - Swatch Group fell short of analyst expectations for its 2025 operating profit on Friday, held back by low capacity utilisation and its decision to keep factories running to prepare for future demand.
Sales Performance by Region
The Swiss watchmaker delivered earnings before interest and tax of 135 million Swiss francs ($176 million), missing the 201.3 million francs forecast by analysts polled by LSEG.
Impact of U.S. Tariffs on Sales
It reported a "strongly negative" operating result in its production segment, blaming the hit on its choice to retain capacity and jobs without seeking compensation for reduced working hours.
Swatch posted an operating margin of 2.1% in 2025, well below the 3.4% analysts had expected.
Sales, however, climbed 4.7% at constant exchange rates in the second half of 2025, helped by a sharp pickup in the fourth quarter, the company said.
The maker of Omega, Longines, Tissot and its plastic Swatch watches said overall sales slipped to 6.28 billion francs last year, a touch ahead of the 6.19 billion francs expected by analysts.
The group said the strong momentum from late 2025 carried into January and that it expected demand for watches at all price points to grow sharply in 2026.
SALES GROWTH ACROSS REGIONS
Sales were up 3.4% for the year and 8.2% in the second half across the group's regions, excluding China, Hong Kong and Macau.
Swiss watch exports fell year-on-year in 2025, the Federation of the Swiss Watch Industry said on Thursday.
Swatch said its Americas region delivered almost 20% sales growth in 2025, expanding steadily despite U.S. tariffs.
Swiss exports to the U.S. faced a 39% tariff from August 7 until November 14, when the rate dropped to 15%, easing pressure on Swiss businesses that had faced Europe's highest U.S. duties.
($1 = 0.7688 Swiss francs)
(Reporting by Bernadette Hogg and Alessandro Parodi. Editing by Matt Scuffham and Mark Potter)
Key Takeaways
- •Swatch's sales increased by 4.7% in H2 2025.
- •Strong acceleration in Q4 contributed to growth.
- •Sales reached 6.28 billion Swiss francs, beating expectations.
- •Analysts expected 6.19 billion francs in sales.
- •Key brands include Omega, Longines, and Tissot.
Frequently Asked Questions about Swatch misses expectations for full year earnings
1What is sales growth?
Sales growth refers to the increase in sales revenue over a specific period, often expressed as a percentage. It indicates how well a company is performing in generating sales.
2What is a financial summary?
A financial summary is a concise overview of a company's financial performance, including key metrics such as revenue, expenses, and profit over a specific period.
