Photo: ZVG
In the first six months of 2026, the Swatch Group reported a net profit of 16 million Swiss francs (approximately 17 million euros). This is 5.8% less than a year earlier. At the same time, the group’s revenue rose by 2% to 3.1 billion francs. Excluding the impact of exchange rates, sales increased by 8.5%, according to Reuters.
The profit fell significantly short of market expectations. Analysts surveyed by the Swiss agency AWP had forecast a profit of about 95 million francs and revenue of approximately 3 billion francs.
The Swatch Group attributed the decline in profit to additional production-related costs. At the same time, the company noted steady demand for its brands across all price segments—from the affordable Swatch to the premium Omega and Longines.
“The sales growth that began in May and continued through June and July allows us to better utilize our production capacity and should lead to a significant improvement in profitability in the second half of the year,” the group said in a statement.
The launch in May of the Royal Pop watches, created by Swatch in collaboration with the luxury watchmaker Audemars Piguet, drew additional attention to the brand. The new product caused a frenzy among shoppers: long lines formed outside stores, and in several locations, police intervention was required to maintain order.
The group recorded its most significant sales growth in the U.S., where revenue from the watch and jewelry business rose by 27% in the first half of the year. In China, Hong Kong, and Macau, sales at company-owned boutiques increased by 9%.
At the same time, the Swatch Group notes that third-party retailers are still exercising caution and are not increasing their inventory levels. This indicates that the global watch market is continuing to recover, but the recovery is gradual.
Swatch Group brings together the brands Omega, Longines, Tissot, and Swatch, and also manufactures watch movements and components. The company expects that sales growth will help it significantly improve its profitability in the second half of the year.
