Policies & IssuesMay 14, 2025
Here’s What Happened to Pope Francis’ RingBefore Pope Leo XIV was elected, a centuries-old procedure regarding the late pontiff’s ring was followed.
FinancialsFeb 01, 2019
Economic Tensions Take Toll on Swatch Sales
Despite lower-than-expected 2018 sales, the Swiss watch company has high hopes for the year ahead.
Pictured here is Omega’s Seamaster Professional Diver 300, updated for the watch brand’s 25th anniversary and unveiled at Baselworld 2018.
Biel/Bienne, Switzerland—Swatch Group posted lower-than-expected full-year results as trade and economic tensions weighed on sales in Asia and France.
In its annual report, the Swiss watch company reported sales rose nearly 6 percent to 8.48 billion Swiss francs ($8.54 billion) compared with the 7.98 billion Swiss francs ($8.03 billion) reported in 2017.
Its watches and jewelry segment, which includes brands like Tissot and Longines, accounted for 8.21 billion Swiss francs ($8.26 billion) of the total.
Net profit for the year rose nearly 15 percent to 867 million francs ($872.33 million), ahead of the 755 million ($759.64 million) Swiss francs in 2017.
Still, the results fell short of the 8.65 billion francs ($8.70 billion) in sales and 952 million francs ($957.86 million) in profit that Reuters analysts had expected. Its 8 francs ($8.05) per share dividend was also lower than analysts had forecasted.
Looming fears of a trade war coupled with a slowing Chinese economy took its toll on sales of luxury watches both in China and when its residents traveled abroad.
“High growth rates were achieved again in Asia, both in wholesale and in the group’s own retail including e-commerce, although a downturn in demand occurred in the last three months of the year, particularly in wholesale,” Swatch said in a statement.
The company saw positive growth in Japan and North America, but Europe was a bit more complicated. While Great Britain and Switzerland increased sales, France’s “yellow vest” protests, fueled by the belief that the French government’s economic policies favor the rich, cut into end-of-year sales.
Looking ahead, Swatch plans to turn the year’s lemons into lemonade, forecasting that “China will become a major opportunity for the group in 2019, even if ongoing market turbulence remains disruptive.”
The company said 2019 has started off on a high note, experiencing solid growth in the month of January.
In its jewelry segment, Swatch pointed to Harry Winston as a brand gearing up for strong growth in 2019, following its $50.37 million November purchase of the Pink Legacy, an 18.96-carat fancy vivid pink diamond once belonging to the billionaire Oppenheimer family behind De Beers.
In the watch division, the company has high hopes for Blancpain’s Fifty Fathoms collection as well as Omega’s products celebrating the 50th anniversary of the moon landing and the brand’s special edition “Minus 1” collection, launching in the second half of 2019 ahead of
the 2020 Olympic Games in Tokyo.
The company struggled to meet demand for the Longines V.H.P. (Very High Precision) collection after production issues in 2018 but said solving those problems is expected to have a positive impact on the brand in 2019.
Meanwhile, Tissot is expected to introduce its T-Touch smartwatch with its own operating system this year as well, ready to take on the smartwatch competition.
The company introduced Swatch Pay, which works similarly to contactless Apple Pay, in Switzerland and plans to expand to other countries throughout the year.
A total of 212 patent applications were filed in 2018, a 15 percent jump compared with 183 the previous year, amounting to one patent per working day, according to the company.
In February, Swatch plans to launch its first Sistem51 watches with its patented Nivachron balance spring with anti-magnetic properties.
Going forward, the company said it plans to feature anti-magnetic properties in all its mechanical watches, as well as a longer guarantee period, to improve precision and reliability as well as to gain market share and a competitive edge.
More on Financials
The Latest
AuctionsMay 14, 2025
Custom Rolex Pulled From Sotheby’s SaleThe one-of-a-kind platinum Rolex Cosmograph Daytona was estimated to fetch up to $1.7 million.
Lab-GrownMay 14, 2025
State of Diamonds: What’s Next for Lab-Grown Diamonds?While the product has entrenched itself in the market, retailers and consultants are assessing the next phase of the category’s development.
Brought to you by
Las Vegas Antique Jewelry & Watch Show: Showcasing the Most Collectible Merchandise from Across the GlobeGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
CrimeMay 14, 2025
Seattle Detectives Seek Public’s Help in Tiffany & Co. Robberies The police are trying to identify the man suspected of robbing two Tiffany & Co. locations in the area.
Weekly QuizMay 08, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsMay 14, 2025
Jeff Corey Elected Chair of JBT Board The well-known Maine jeweler takes over for Brian Fleming and will serve a one-year term.
Policies & IssuesMay 14, 2025
Foundrae Donates $11K to Ethical MetalsmithsThe donation was the result of the brand’s annual Earth Day Ingot event.
Brought to you by
Watch: The Winston Red: GIA Examines the Smithsonian’s Newest AdditionSupplier Spotlight Sponsored by GIA
IndependentsMay 13, 2025
Eiseman Jewels’ Renovated Dallas Store Is Bigger and BetterLocated in NorthPark Center, the revamped store is nearly 2,000 square feet larger and includes the first Tudor boutique in Dallas.
MajorsMay 13, 2025
DCA Announces New Learning Platform, Course UpdatesThe nonprofit has made updates to the content in its beginner and advanced jewelry sales courses.
MajorsMay 13, 2025
BIJC Launches New Education FundBIJC President Malyia McNaughton will shift roles to lead the new foundation, and Elyssa Jenkins-Pérez will succeed her as president.
TrendsMay 13, 2025
State of Jewelry Design: The Top 10 Jewelry Trends of the Past DecadeAs a nod to the theme of JCK Las Vegas 2025, “Decades,” National Jeweler took a look back at the top 10 jewelry trends of the past 10 years.
Lab-GrownMay 12, 2025
Lightbox to Go Dark by Summer, De Beers Says The company plans to halt all consumer-facing activity this summer, while Lightbox factory operations will cease by the end of the year.
Policies & IssuesMay 12, 2025
Tariffs on Chinese Imports Temporarily Slashed as U.S.-China Reach Deal Following weekend negotiations, the tax on Chinese goods imported into the United States will drop by 115 percent for the next 90 days.
Events & AwardsMay 12, 2025
Jewelry By Picasso, Dalí on Display at Florida Art Museum “Artists’ Jewelry: From Cubism to Pop, the Diane Venet Collection” is on view at the Norton Museum of Art through October.
Events & AwardsMay 12, 2025
CASE Awards Now Accepting Entries For 2025The deadline to submit is June 16.
IndependentsMay 09, 2025
Lugano Diamonds CEO Resigns Amid Internal InvestigationMoti Ferder stepped down Wednesday and will not receive any severance pay, parent company Compass Diversified said.
CollectionsMay 09, 2025
Pieces of the Week: Marie Lichtenberg’s Collaborations for Mother’s DayLichtenberg partnered with luxury platform Mytheresa on two designs honoring the connection between mothers and daughters.
SourcingMay 09, 2025
Gemfields Resumes Emerald Mining in ZambiaThe miner announced plans to recommence open-pit mining at Kagem.
CrimeMay 08, 2025
Former NYC Jewelry Store Employee Arrested in 2017 Choking Death of Boss Michel Desalles allegedly murdered Omid Gholian inside World of Gold N Diamond using zip ties and then fled the country.
EditorsMay 08, 2025
5 ‘Superfine’ Met Gala Jewelry MomentsAssociate Editor Lauren McLemore shares her favorite looks from a night of style inspired by Black dandyism.
Supplier BulletinMay 08, 2025
Instappraise Introduces Game-Changing Trifold Appraisal FormatSponsored by Instappraise
IndependentsMay 08, 2025
Margot McKinney Lands in the U.S. With New BoutiqueThe brand’s first independent location outside of Australia has opened in Beverly Hills, California.
IndependentsMay 08, 2025
Verragio Announces New Regional Sales ManagerCathy Marsh will lead the jewelry company’s efforts in the upper Midwest and western United States.
ColumnistsMay 07, 2025
The Smart Lab: Building a Seasonal Marketing Strategy for Mother’s Day and BeyondConnecting with your customers throughout the year is key to a successful holiday marketing push.
SourcingMay 07, 2025
Gemfields Says Emerald Sales Improved in Latest AuctionIts commercial-quality emerald sale held last month totaled more than $16 million, up from about $11 million in September 2024.
TechnologyMay 07, 2025
Punchmark’s Latest Podcast Features a Very Special Guest National Jeweler Editor-in-Chief Michelle Graff joined Michael Burpoe to talk tariffs, consumer confidence, and the sky-high price of gold.
