Swatch forecasts record 2023 sales as China lifts Covid curbs

Swatch reported net sales of 7,499 million Swiss francs, up 4.6 percent for the year at constant exchange rates, or up 2.5 percent at current rates.

In view of the strong position of the group brands in all segments worldwide and the robust numbers in January for Mainland China, the company aims to achieve a record year in 2023.

“After the end of Covid measures, consumption quickly recovered, not only in China, but also in the surrounding markets of Hong Kong SAR and Macau. In addition, lifting of travel restrictions in China will revitalise sales in tourist destinations,” Swatch said in a statement.

The company added that the company saw sales growth of 25 percent in local currencies in all regions, with the exception of China, where Covid lockdowns resulted in sales shortfalls of over 700 million Swiss francs.

Swatch operating profit reached 1,158 million Swiss francs over previous year’s 1,021 million Swiss francs, while operating margin was 15.4 percent compared to 14 percent last year.

Net income for the year was 823 million Swiss francs against previous year’s 774 million Swiss francs, while net margin increased to 11 percent compared to 10.6 percent in the previous year.

The MoonSwatch emerged as the best-seller, with over 1,000,000 watches sold over the year under review. The company continues to witness high demand, including in January, in the approximately 180 stores which exclusively offer the MoonSwatch.