Swarovski defies the crisis: sales up 6 per cent

Swarovski defies the crisis: sales up 6 per cent

Swarovski's 2024 fiscal year was a brilliant one. The crystal jewelry manufacturer has published its financial results. The results are decidedly positive.

Left: Swarovski necklace “Chroma Twist” with green crystals. © Swarovski

“Record Desirability” at Swarovski

Brilliant performance. Swarovski presented its financial figures for 2024 this week. The Austrian crystal jewelry manufacturer increased its sales to just over €1.9 billion, representing an increase of 6 percent. Swarovski reported robust like-for-like growth of 8 percent "in a challenging retail environment."

"The turnaround is in full swing," reports Swarovski. It has been a year of great progress, including strong organic growth and significant improvements. This also applies to operating profit before depreciation and cash flow. The company even speaks of "record brand desirability," which, according to Swarovski, is due to the appealing collections and a fascinating retail shopping experience.

EBIDTA positive for the first time in five years

The Swarovski Crystal Business recorded organic growth of 11 percent. EBIDTA increased by double digits, bringing the company's operating result to a fully positive level for the first time in five years. However, Swarovski did not disclose any specific figures.

The success is likely due to a comprehensive strategic shift: the so-called LUXignite strategy, with which Swarovski already oriented itself toward luxury two years ago. The focus in the consumer sector is on the special shopping experience in the newly designed stores, on creative collections, and a high-fashion look intended to appeal to Gen Z. In this area, Swarovski is working with stars like pop singer Ariana Grande, who will represent the crystal jewelry manufacturer as a brand ambassador.

Giovanna Battaglia Engelbert has been Swarovski's Creative Director since 2020 and has contributed significantly to the brand's success. In recent years, her jewelry collections have been presented in highly elaborate photo campaigns that have strengthened Swarovski's luxury image.

Swarovski CEO Alexis Nasard summarizes:

These strong and consistent results demonstrate the strength of the LUXignite strategy and Swarovski's ability to execute it with excellence. These achievements in a challenging and volatile environment are a testament to the commitment of Swarovski's employees and partners around the world, as well as the support of our Management Board and shareholders.

Swarovski's success in numbers

Swarovski's success is clearly reflected in its financial results. Profitability at its stores increased by 7 percent compared to 2023.

The jewelry division recorded organic growth of 9 percent – three times the overall market. All regions in which Swarovski is represented worldwide contributed to the brand's growth. In Europe, this growth was 11 percent compared to the previous year. In North and South America, the brand grew by 10 percent, and in Asia – despite stagnation in the Chinese market – by 3 percent.

The company increased its market share in 8 of the 10 markets in which it operates. Swarovski also announced record sales in the USA and its home country, Austria. CEO Nasard reiterated his commitment to continue consistently implementing the new strategy.

Swarovski Created Diamonds

Swarovski also entered the lab-grown diamond business a few years ago, where they are known as “Swarovski Created Diamonds,” and the company has more than doubled its sales in this area. 

Lab-grown diamonds remain a controversial topic in the jewelry industry. Reasons for this include the sharp price decline, which recently reached 90 percent, questionable production methods, and long supply chains that fail to live up to the oft-cited claim of sustainability. For consumers, however, the price and identical appearance are the main arguments in favor of synthetic diamonds. 

Jewelry manufacturers operating in the lifestyle sector and at entry-level price points are particularly benefiting from the strong demand. Swarovski's move to integrate lab-grown diamonds into its own jewelry meets the needs of many customers. This segment is likely to become even more important for the company in the future.