The Group saw excellent performance in the second half of 2025 with sales growth of 4.7% at constant exchange rates, bolstered by a strong acceleration in the fourth quarter where sales rose by 7.2% worldwide across all price segments. The Group expects substantial growth for the year 2026 in all price segments. Despite current headwinds, capacity utilization will improve significantly in the coming months and should massively reduce, or even help reverse, the negative result for the Production segment.
Cyborg Score Rationale
Operating profit decreased to CHF 135 million from CHF 304 million in 2024, resulting in an operating margin of 2.1%. However, the Watches & Jewellery segment, excluding Production, achieved an operating margin of 9.5% for the full year and an operating profit of CHF 549 million. Strong H2 momentum and positive 2026 guidance offset near-term margin compression.
Top Insights
(January 2026) Fourth quarter 2025 achieved 7.2% worldwide sales growth across all price segments, with momentum continuing into January 2026
(January 2026) Watches & Jewelry segment delivered 9.5% operating margin excluding the deliberately underutilized Production segment
(January 2026) Company maintained production capacity and jobs despite weak demand, prioritizing employment over short-term margins
(May 2026) New Board member Andreas Rickenbacher elected with 92.2% shareholder support to strengthen strategic direction
Named Competitors
Richemont Luxury Watches — Luxury goods conglomerate with Cartier, IWC, Van Cleef & Arpels watch and jewelry brands
LVMH Watches — Luxury conglomerate with TAG Heuer, Hublot, Zenith and other premium watch brands
Rolex — Independent luxury watch manufacturer known for precision and heritage
Apple Watch — Smartwatch competing in affordable and premium segments
Recent Developments
(April 2026) Swatch AI-DADA watch personalization concept launched to drive innovation in entry-level segment
(Q4 2025) Fourth quarter sales surge 7.2% worldwide, anchoring strong H2 recovery after flat first half
(January 2026) Group expects robust sales and volume growth for full year 2026 across all price segments
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