Swiss Watches Exports Returned to Growth in January

PARIS – May the Swiss watch business’s woes be over in 2025?

Export of timepieces returned to progress in January, in accordance with figures printed Thursday by the Federation of the Swiss Watch Trade. They rose 4.1 p.c year-on-year to 1.9 billion Swiss francs, or $2.1 billion at present change charges.

The U.S. continued to guide, with the highest marketplace for Swiss timepieces rising 16.2 p.c.

The polarization of the market continued to be seen in figures by worth phase, with the posh phase displaying stronger restoration.

“Worth rises, the U.S. and lowest and most costly watches drive robust exports,” Jefferies analyst James Grzinic wrote in a buying and selling notice. “That is pushed by main worth rises in each the most cost effective and the costlier timepieces, in addition to a powerful stock rebuild within the US.”

Gross sales in mainland China “stay very weak,” he added.

The downward flip in demand for Swiss timepieces in Better China continued because the mainland and Hong Kong confirmed declines of 29.1 p.c and 11.7 p.c respectively.

Japan was a shiny spot in Asia, with gross sales up 26.2 p.c within the island nation, because the weak yen has hit a low in opposition to the greenback, spurring on excessive earnings for the nation’s automobile exports and sending the inventory market hovering.

Demonstrating the bifurcation of the market, watches at each the excessive and low finish noticed progress, whereas the center misplaced floor.

Watches below 200 Swiss francs at export worth grew in worth by 0.7 p.c, though the business physique famous that they “remained at a degree near their 2024 efficiency.”

The mid-range continued to say no in quantity and worth by excessive single-digits.

Excessive-end timepieces, priced over 3,000 Swiss francs at export worth, grew 7 p.c in worth and by 0.6 p.c in quantity.

However this will not sign the tip of luxurious woes as a combined image emerged from the breakdown by supplies.

Whereas precious-metal watches and gold-and-steel fashions grew 9.7 and eight.9 p.c in worth respectively, their volumes contracted by 3.6 and 1.5 p.c. In the meantime, metal watches proceed to lose floor in quantity, dipping 2.4 p.c, whereas the variety of items leaving the nation rose by 5 p.c.

Worth progress on the excessive finish comes as valuable metals have skyrocketed.

Gold costs hit their all-time excessive on the finish of January at $2,798 per troy ounce, up 7 p.c and surpassing its earlier excessive in October 2024. Merchants have been stockpiling gold, with commodity merchants within the U.S. growing stock 75 p.c because the U.S. election in November, inflicting shortages in different markets.

Different metals together with silver and platinum have additionally seen costs rise, round 2.5 p.c every.

Branded timepieces and laborious luxurious continued to generate robust curiosity from customers, persevering with a sample of customers in search of marque names. Cartier and Van Cleef & Arpels have been two manufacturers that continued to do properly with customers, Grzinic famous.