GradingAug 22, 2025
Former Head of GIA India Promoted to Oversee Global Operations Sriram “Ram” Natarajan is now GIA’s senior vice president of laboratory operations and is based out of the lab’s headquarters in Carlsbad.
FinancialsJul 15, 2020
Swatch Cuts Jobs, Closes Stores as Sales Slump
The Swiss watchmaker is eliminating 2,400 jobs and closing 260 locations in an effort to downsize its retail footprint.
The Omega 38 mm Seamaster 1948 Small Seconds. Swatch Group, which owns Omega along with Rado, Longines and more, is cutting jobs and closing stores after COVID-19 lockdowns hurt sales.
Biel/Bienne, Switzerland—Swatch Group will eliminate 2,400 jobs, about 6 percent of its workforce, and close 260 stores as part of a downsizing amid the COVID-19 pandemic.
In the first half of the year, Swatch’s net sales plummeted 43 percent year-over-year at constant exchange rates to 2.19 billion Swiss francs ($2.34 billion).
A strong Swiss franc worked against Swatch, reducing sales by 113 million Swiss francs ($120.4 million), noted Chief Financial Officer Thierry Kenel in a video shared by Swatch about its results.
The Swiss watchmaker said it was off to a strong start in January, but saw its momentum halted after COVID-19 forced the closure of up to 80 percent of its distribution channels.
It swung to a loss in the six-month period ending June, posting a total net loss of 308 million francs ($328.1 million) compared with a net profit of 415 million francs ($442.2 million) in the previous year.
The company reported an operating loss of 327 million francs ($348.4 million), which was twice as much as analysts had expected.
While sales in China fell as much 80 percent year-over-year in certain months, sales in the United States did not reach the same lows.
“The reason being was the online business, which we have built up over the past year,” Chief Controlling Officer Peter Steiger said in the video.
Online sales in the U.S. “reached one record after the other” during lockdown.
The in-store rebound started in May, but was halted one week later by protests in the wake of the death of George Floyd, said Steiger.
The second half of June is when in-store business “really took off again,” he said, with continued improvement seen in the first two weeks of July.
Omega was the “star performer” of its brands while Swatch also performed well.
Swatch Group had begun lowering its store count even before COVID-19 took hold, with a particular focus on Hong Kong.
“There are nearly no sales in Hong Kong at the moment,” CEO Nick Hayek said in the video, citing ongoing political unrest in the region alongside the impact of the coronavirus.
Swatch’s licensing agreement with Calvin Klein, in place since 1997, ended in October 2019 and many of the 260 store closures were a result of that decision, said Hayek.
Swatch contacted Calvin Klein parent company PVH Corp. to determine which company would take over these stores, said Hayek, but there was no response so the stores were closed.
The 2,400 job cuts were made mostly at its retail stores rather than at its production facilities.
In the first half of the year, Swatch’s net sales plummeted 43 percent year-over-year at constant exchange rates to 2.19 billion Swiss francs ($2.34 billion).
A strong Swiss franc worked against Swatch, reducing sales by 113 million Swiss francs ($120.4 million), noted Chief Financial Officer Thierry Kenel in a video shared by Swatch about its results.
The Swiss watchmaker said it was off to a strong start in January, but saw its momentum halted after COVID-19 forced the closure of up to 80 percent of its distribution channels.
It swung to a loss in the six-month period ending June, posting a total net loss of 308 million francs ($328.1 million) compared with a net profit of 415 million francs ($442.2 million) in the previous year.
The company reported an operating loss of 327 million francs ($348.4 million), which was twice as much as analysts had expected.
While sales in China fell as much 80 percent year-over-year in certain months, sales in the United States did not reach the same lows.
“The reason being was the online business, which we have built up over the past year,” Chief Controlling Officer Peter Steiger said in the video.
Online sales in the U.S. “reached one record after the other” during lockdown.
The in-store rebound started in May, but was halted one week later by protests in the wake of the death of George Floyd, said Steiger.
The second half of June is when in-store business “really took off again,” he said, with continued improvement seen in the first two weeks of July.
Omega was the “star performer” of its brands while Swatch also performed well.
Swatch Group had begun lowering its store count even before COVID-19 took hold, with a particular focus on Hong Kong.
“There are nearly no sales in Hong Kong at the moment,” CEO Nick Hayek said in the video, citing ongoing political unrest in the region alongside the impact of the coronavirus.
Swatch’s licensing agreement with Calvin Klein, in place since 1997, ended in October 2019 and many of the 260 store closures were a result of that decision, said Hayek.
Swatch contacted Calvin Klein parent company PVH Corp. to determine which company would take over these stores, said Hayek, but there was no response so the stores were closed.
The 2,400 job cuts were made mostly at its retail stores rather than at its production facilities.
Meanwhile, in Switzerland only about half of Swatch’s employees are back to work full-time, said Steiger, with around 2,500 taking unused vacation or reducing overtime.
Another 6,000 were on short-time work, a social safety net program where companies can apply for the government to subsidize workers’ salaries.
Swatch said 170 million francs in insurance went toward keeping its employees onboard with 150 million of that going to its Swiss manufacturing segment.
The partial unemployment measures are expected to end in the third quarter as manufacturing returns to full capacity, said Steiger.
Looking ahead, Swatch is expecting a strong second half of the year as restrictions are lifted and more stores begin to reopen.
The watchmaker will introduce new products to bolster its second-half sales, including new “James Bond”-edition Omega watches, a Tissot Connect smartwatch, and the Longines “Spirit” collection.
The company said it has seen “very high” customer demand across price segments in the markets that have reopened, including double-digit year-over-year growth in mainland China in May and June.
Swatch is expecting a lower cost base as the public events it sponsors, including horse races and the Olympic games, are on hold for the foreseeable future, though the company still does expect to take part in future Olympics and the America’s Cup.
Fewer stores and less marketing investment will also bring down costs.
“For the full year, we are very confident that we will show a very good profit, [but] of course not comparable with the year before,” said Hayek.
More on Financials
The Latest
CollectionsAug 22, 2025
Piece of the Week: Retrouvaí’s ‘Diamond Vein Bond’ CollarThe one-of-a-kind collar represents the beauty of imperfection and the strength to rebuild.
MajorsAug 22, 2025
Kendra Scott Returns as CEO of Her Jewelry EmpireThree C-suite executives, including former CEO Tom Nolan, have resigned as part of what the company describes as a “transition.”
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key IssuesJewelers of America is leading the charge to protect the industry amidst rising economic threats.
MajorsAug 21, 2025
Claire’s Finds Buyer, Could Save up to 950 StoresThe retailer, which recently filed Chapter 11, inked a deal to sell its North American business and intellectual property.
Weekly QuizAug 22, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsAug 21, 2025
Target Names New CEO as Sales Continue to Lag Target CEO Brian Cornell will step down in February and be replaced by the company’s chief operating officer, Michael Fiddelke.
Policies & IssuesAug 21, 2025
JA, IDMA Talk Tariffs With Execs in DC The group met with the president's senior trade advisor earlier this week to express the industry’s concerns about the effects of tariffs.
Brought to you by
Taking the Moment Head On: How Rio Grande Champions the Present & Future of Fine JewelryAs a leading global jewelry supplier, Rio Grande is rapidly expanding and developing new solutions to meet the needs of jewelers worldwide.
MajorsAug 21, 2025
Tiffany & Co. Pops Up at 2025 US OpenThe pop-up will display this year's Tiffany & Co. Singles Championship trophies along with a diamond-encrusted tennis racket and ball.
IndependentsAug 20, 2025
Bellman’s Jewelers Opens Second Store After COO's TikTok Takes OffThe New Hampshire-based store has expanded to Boston, propelled by the success of Alex Bellman’s TikTok page, “The Truthful Jeweler.”
CrimeAug 20, 2025
Another CA Jewelry Store Rammed With Car, RobbedThe latest incident happened Monday at a store in Oakland, California, continuing a pattern JSA first warned about last month.
WatchesAug 20, 2025
Oris Launches Watch Benefiting NYC Harbor Oyster RestorationThe new aqua green New York Harbor Limited Edition II is the watchmaker’s second collaboration with the Billion Oyster Project.
Events & AwardsAug 20, 2025
Take the Jewelers for Children ‘Trinity of Purpose’ ChallengeParticipants who attend any three Rings of Strength events will be awarded a special medal.
SourcingAug 19, 2025
Dubai’s Jemora Group Buys Diamond Miner LucapaThe investment company, founded by Dev Shetty, has acquired the struggling miner and its assets, including the Lulo mine in Angola.
ColumnistsAug 19, 2025
Peter Smith: The Arrival Fallacy and Jewelry RetailSmith shares wisdom he gleaned from a podcast he was listening to one morning while being walked by his dog, a Malshi named Sophie.
CrimeAug 19, 2025
Customs Seizes 7,300 Pairs of Fake ‘Alhambra’ EarringsThe counterfeit Van Cleef & Arpels jewels would have been worth more than $30 million if genuine.
MajorsAug 19, 2025
MJSA Apprenticeship Program Is Nationally RecognizedThe MJSA Mentor & Apprenticeship Program received the Registered Apprenticeship Program designation by the U.S. Department of Labor.
WatchesAug 19, 2025
Casio America Names New Timepiece Division ManagerCasio executive and watch enthusiast Masaki Obu is the new general manager of its U.S. timepiece division.
MajorsAug 18, 2025
Verragio’s Michael Barabash, a ‘Kind Soul,’ Dies at 58Barabash, Verragio’s client relations representative, was a vital member of the team and is remembered as being warm and full of life.
CollectionsAug 18, 2025
John Hardy’s New ‘Dot’ Collection Is on PointOriginally introduced in 1992, the “Dot” collection is back with a capsule featuring five archival designs and three new creations.
Events & AwardsAug 18, 2025
IJO Announces 2025 Vendor of the YearAllison-Kaufman has received the honor for the fourth year in a row.
EditorsAug 15, 2025
Piece of the Week: Etho Maria’s Showgirl-Approved Ruby Drop Earrings Taylor Swift dons the vibrant pair in new promotional imagery for her upcoming album, “The Life of a Showgirl,” set to release in October.
WatchesAug 15, 2025
Audemars Piguet Acquires Majority Stake in ManufacturerIts investment in micromechanics expert Inhotec will preserve skills essential to the watchmaking industry as a whole, said the company.
MajorsAug 15, 2025
Rio Grande Names New Marketing DirectorNicolette Bianchi joins the wholesale provider with more than 15 years of cross-industry experience in marketing and product development.
CollectionsAug 14, 2025
In Midst of ‘Sardine Girl Summer,’ Pippa Small Looks to ‘Flounder Fall’Her new “Ocean” collection was inspired by Myanmar’s traditional articulated fish jewelry, with depictions of flounder, catfish, and more.
MajorsAug 14, 2025
Casio America Names New CEOLongtime Casio executive Yusuke Suzuki is the new president and CEO of Casio’s U.S. subsidiary.
SourcingAug 14, 2025
West Coast Orgs to Host Trading Event, Mixer in LAThe full-day sourcing and networking event, slated for Aug. 18, will be followed by the fifth annual Mega Mixer Summer Soirée.
