Events & AwardsAug 17, 2026
Exhibition on Louis Comfort Tiffany’s Studios to Open at The MetThe exhibition will feature more than 100 drawings of stained-glass lampshades, windows, and more, many created by women and émigrés.
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.
Editors' Picks
Sponsored by
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 17, 2026
Marquise Diamonds Dance in Spinelli Kilcollin’s ‘Wren’ CollectionMarquise-cut diamonds in drop charms are the center of the new collection, reflecting the movement of a dancer in modular styles.
Events & AwardsAug 17, 2026
There’s a New Jewelry Show Coming to FloridaThe inaugural Fort Lauderdale Jewelry, Antique, & Object Show will be held from Jan. 28 through Feb. 1, 2027.
Brought to you by
Why More Jewelry Retailers Are Hosting Turnkey Estate Buying EventsRetailers are seeking new ways to attract customers, increase traffic, and create revenue – Estate buying events are a popular solution.
IndependentsAug 14, 2026
Smyth Jewelers to Open Fourth LocationThe family-owned jeweler will open a new showroom in Bel Air, Maryland, this fall.
Weekly QuizAug 13, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeAug 14, 2026
Wife of Man Convicted in Jeweler’s Murder Sentenced for Conspiracy Amanda Ileana Hernandez is married to Carlos Hernandez, one of two men in prison for the 2024 murder of Michigan jeweler Hussein Murray.
TrendsAug 14, 2026
Paul Morelli’s Latest ‘Wavey Vine’ Earrings Embrace ColorThe reimagined jewel, our Piece of the Week, trades the diamonds in the original 1998 design for blue, pink, yellow, and green sapphires.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
Supplier BulletinAug 13, 2026
Your Piece Could Be the One Editors Talk AboutSponsored by American Gem Trade Association
AuctionsAug 13, 2026
This Gold Cadbury ‘Conundrum’ Egg Set a World Auction RecordThe 22-karat gold egg, sold at Batemans Auctioneers in the U.K., was part of a 1980s treasure hunt ad campaign for Cadbury Creme Eggs.
SourcingAug 13, 2026
2,488-Carat Diamond, Largest Found in Botswana, Has a New Owner Lucara Diamond Corp., which recovered the “Motswedi” diamond from the Karowe mine, sold the stone for an undisclosed amount.
CollectionsAug 13, 2026
John Hardy Infuses ‘Icon,’ ‘Heishi’ Collections with ColorThe expanded collections now feature hand-cut gemstones like topaz, tanzanite, chrysoprase, chalcedony, smoky quartz, and fire opal.
Lab-GrownAug 13, 2026
Jean Dousset Opens Third StoreThe lab-grown diamond jewelry brand’s newest boutique is in Westfield Valley Fair in Santa Clara, California.
SourcingAug 12, 2026
Eshed-Gemstar on the Painstaking Process of Cutting ‘The Legacy Emerald’The gemstone supplier and manufacturer acquired the remarkable 104-gram Zambian emerald at Gemfields’ auction in May.
CrimeAug 12, 2026
Elderly NYC Woman Targeted in Jewelry Swap SchemeTwo suspects offered to trade the woman a “winning” lottery ticket for her jewelry.
SourcingAug 12, 2026
Another Diamond Mine Poised to CloseFinsch has been in business rescue since May, and owner Petra Diamonds said it sees no viable path forward for the mine.
CrimeAug 12, 2026
Jewelry Store Employee Gets 20 Years to Life in Choking Death of BossMichel Patrick DeSalles was sentenced after pleading guilty to the 2017 murder of Omid Gholian, who owned a jewelry store in Manhattan.
MajorsAug 12, 2026
Frederick Goldman Names New SVP of SalesLongtime industry executive Beth Miller has taken on the role.
AuctionsAug 11, 2026
Verdura Unicorn Brooch With Royal Connection Up for Auction The brooch was owned by Virginia Fortune Ryan Ogilvy, who served as a lady of the bedchamber to Queen Elizabeth II for nearly 50 years.
MajorsAug 11, 2026
Signet Jewelers Selects Mattel Exec to Lead Zales, BanterJamie Cygielman will take on the role on Aug. 24.
IndependentsAug 11, 2026
Polly’s Fine Jewelry Co-Owner Richard Moore Dies at 69Moore, Polly’s husband, is remembered as a family man with an easygoing spirit and a love for sports and the outdoors.
ColumnistsAug 11, 2026
Creative Connecting: How to Sell Colored Gemstones to Gen ZDuvall O’Steen and Jen Cullen Williams share the best ways to display, present, and explain colored gemstones to younger customers.
Events & AwardsAug 11, 2026
NAJA Announces Lineup For 2026 Fall Virtual ConferenceThe mid-year conference for jewelry and watch appraisers will take place Sept. 5-6 on Zoom.
TechnologyAug 10, 2026
Colorado Jeweler Launches Customization Tool He Built HimselfHonest Hands Ring Co. Founder Benjamin Bosworth shared his thoughts on jewelry technology and why AI can never replace the human element.
MajorsAug 10, 2026
QVC Exits Chapter 11 Bankruptcy, Names New Interim CEOQVC Group President and CEO David Rawlinson is temporarily being replaced by a familiar face, former QVC CEO Mike George.
CollectionsAug 10, 2026
State Property Puts a Ripple in the ‘The Voyager’ CollectionThe brand also added two one-of-a-kind brown diamond pieces to the “Sanssouci” series of its “Gardens” collection.
MajorsAug 10, 2026
And IJO’s 2026 Vendor of the Year Is … Ostbye took home top vendor honors at the Independent Jewelers Organization’s show, held last month in Kentucky.
