Swatch: 2024 results well below expectations

(CercleFinance.com) - Swatch Group underperformed in 2024, with an operating margin that was divided by three, while this underperformance could not be overshadowed by a more optimistic outlook for the current year.


The Swiss watchmaking group posted a net profit of 219m CHF last year, compared with 890m CHF in 2023, below the earnings consensus of 365m CHF.

Operating profit fell to 304m CHF, still below the consensus figure of 509m CHF, leading to a deterioration in the margin to 4.5%, compared with 15.1% in 2023.

At 6.73bn CHF, net sales were down 12.2% at constant exchange rates, below analysts' expectations of 6.95bn CHF.

This lower-than-expected performance contrasts with the better-than-expected results recently published by other groups in the luxury goods sector, such as Richemont.

For 2025, Swatch Group says it expects a marked improvement in sales, operating income and cash flow.

In its press release, Swatch says it is proposing to pay a reduced dividend of 0.90 CHF per registered share, down from 1.30 CHF, and 4.5 CHF per bearer share, down from 6.5 CHF.

The registered share was down 4% after these figures, while the bearer share fell by almost 4.5%.


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