Swatch Group Annual Report 2025: Cautious Optimism After a Difficult Previous Year
The Swatch Group had a difficult fiscal year in 2025. This had already been revealed by the Group’s financial results, which were published at the end of January.
The Swatch Group’s net income fell dramatically from €219 million in 2024 to €25 million in 2025. Revenue also declined, dropping from €6.73 billion to €6.28 billion, representing a 5.9 percent decrease at current exchange rates.
While the Swatch Group reported growth in many regions, particularly in the second half of 2025, weak demand in China, in particular, weighed on the results.
“The Swatch Group posted mixed results in 2025, due to continued subdued consumer sentiment in Greater China,” said Nayla Hayek, Chairwoman of the Board of Directors of the Swatch Group, in the foreword to the Group’s annual report published today. Regarding the current year 2026, she writes.
“Looking ahead to 2026, we remain realistic but confident.”
Nayla Hayek
While the Watches & Jewelry segment (excluding manufacturing) closed the fiscal year with only a slight decline in sales, the decline in sales in the manufacturing segment was significant. This was due to a decrease in orders from third parties and the Group’s brands. In contrast, the Swatch Group recorded growth in the Electronic Systems segment (+8.8% at current exchange rates).
In its annual report, the Swatch Group emphasizes that it nevertheless stuck to its strategy of avoiding layoffs and refrained from applying for short-time work compensation, even though the potential annual amount would have been substantial.
“Maintaining production capacity is crucial to capitalizing on the positive momentum of the second half of 2025, which is expected to continue this year, meaning that production results will improve significantly,” the Group is confident.
The outlook for the current fiscal year is therefore optimistic: “Given the very positive momentum in the second half of 2025, with a strong acceleration in the fourth quarter, the Group expects substantial growth across all price segments in 2026. As a result, production capacity utilization will improve significantly in the coming months and is likely to lead to a massive reduction or even elimination of the negative result in the production sector.”
