The Swatch Group (UHR) H1 2025 earnings summary

Executive summary

• Net sales declined 7.1% year-over-year at constant exchange rates to CHF 3,059 million, with a 10.4% drop at current rates due to negative currency effects of CHF -113 million.

• Operating profit fell to CHF 68 million from CHF 204 million, with an operating margin of 2.2% versus 5.9% last year.

• Net income dropped to CHF 17 million from CHF 147 million, with a net margin of 0.6% compared to 4.3% a year ago.

• Sales decline was exclusively attributable to China (including Hong Kong SAR and Macau SAR), while other regions matched record years in local currencies.

• Double-digit sales growth achieved in North America, India, Turkey, Middle East, and Australia; strong brand performance in the USA.

Financial highlights

• Operating cash flow increased to CHF 180 million from CHF 90 million year-over-year.

• Net liquidity stood at CHF 1,091 million, down from CHF 1,376 million at December 2024.

• Equity was CHF 11.7 billion (equity ratio 86.2%), compared to CHF 12.2 billion (87.3%) at December 2024.

• Basic earnings per registered share was CHF 0.01, and per bearer share CHF 0.06, down sharply from CHF 0.52 and CHF 2.62, respectively, in the prior year.

• Investments in non-current assets totaled CHF 229 million, down from CHF 283 million year-over-year.

Outlook and guidance

• Signs of improvement in China, especially in e-commerce and inventory reduction at retailers, with expectations for a better market environment in Greater China in H2 2025.

• Anticipates further growth in the USA, Japan, and India, and improved production capacity utilization driven by new product launches.

• E-commerce in China continues to show positive consumption trends.