Swatch Sees 89% Profit Decline in 2025 Amid Tariff Woes and Sluggish Demand

Swatch sinks its net result. The profits of the Swiss watchmaking company have fallen by 88.6% in a year marked by the tariff impact. If in 2024 the company posted a profit of 219 million Swiss francs (238.79 million euros), in 2025 it was 25 million Swiss francs (27.2 million euros).

The watch company has also seen its sales fall by 6.75%, from 6,735 million Swiss francs (€7,343.8 million) in 2024 to 6,280 million Swiss francs (€6,847.7 million) in 2025. The operating result has also been affected and posted a 55.6% drop from 135 million Swiss francs (147.2 million euros) in 2024 to 304 million Swiss francs (331.5 million euros).

By category, watches and jewelry posted a turnover of 5,934 million Swiss francs (6,470.4 million euros), while it recorded net sales of 6,418 million Swiss francs (6,998.1 million euros) in 2024. This implies a drop of 7.5%. The company says that these results are partly due to a drop in the utilization of its production capacity and its decision to keep factories in operation in anticipation of higher future demand.

Swatch recorded sales of 6,847.7 million euros in 2025, 6.75% less than the previous year.

Turnover in the other categories is residual, except for electronic systems, which, however, also fell. In 2024, it posted net sales of 330 million Swiss francs (359.8 million euros), and in 2025, turnover stood at 358 million Swiss francs (390.3 million euros).

In this context, the company has argued in its results sheet that, at constant exchange rates, excluding China, Hong Kong and Macau, sales would have increased by 3.4% in the year: 8.2% in the second half and 10.4% in the last quarter. Swatch did not break down the figures by market.

It also assures that the Americas region, with the United States at the forefront, has increased its sales by almost 20% “regardless of the tariff chaos”. He also assured that sales in India, the Middle East, Mexico and Poland, “markets with strong potential”, were growing at double-digit rates. In the second half of the year, turnover also advanced in Europe and Asia, “especially in the United Kingdom, Germany, South Korea and Taiwan”.

Despite the figures, Swatch anticipates “substantial growth” for the full financial year 2026. “The acceleration in the fourth quarter of 2025 continues in January this year,“ the statement said. And it has stated that in the coming months it will “significantly” reduce or even “reverse” the negative result.