Lab-GrownMay 08, 2026
NDC Publicly Criticizes Pandora Over ‘Misleading’ Natural Diamond ClaimsNDC said in an open letter that Pandora’s statements about the carbon footprint of lab grown versus natural diamonds are inaccurate.
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
SourcingMay 08, 2026
Ronnie VanderLinden Takes Over as WDC President The diamantaire and industry leader succeeds Feriel Zerouki and said he will focus on being a “champion” for natural diamonds.
TrendsMay 08, 2026
Rihanna Chooses ‘Desert Diamonds’ for 2026 Met GalaShe wore our Piece of the Week, Glenn Spiro’s “Old Moghul Golconda” earrings, featuring fancy brown-yellow diamonds totaling 51.90 carats.
Brought to you by
Discover Timeless Treasures: A Showcase of Antique Jewelry & Timepieces in Las VegasGain access to the most exclusive and coveted antique pieces from trusted dealers during Las Vegas Jewelry Week.
Events & AwardsMay 08, 2026
JA Announces 2026 CASE Award WinnersTwo pieces were named “Best in Show,” one from the retail category and one from the supplier category.
Weekly QuizMay 07, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
AuctionsMay 07, 2026
‘Spectacular’ Kashmir Sapphire Headlines Heritage Spring Jewelry SaleLed by the 6.59-carat sapphire, the sale garnered $9.7 million, a record total for a Heritage jewelry auction.
MajorsMay 07, 2026
Gannon & Scott Names New Regional Account ExecutiveIn his new role, sales specialist Billy Welshoff will focus on the eastern United States.
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.
WatchesMay 07, 2026
Chrono24 Names New CEOJosé Gaztelu has been promoted to the role, which has been vacant since last year.
Events & AwardsMay 07, 2026
JA Accepting Applications for 2026 Scholarship ProgramIt has also opened the application period for the Seymour & Evelyn Holtzman Bench Scholarship through June 30.
SourcingMay 06, 2026
Canada’s Oldest Diamond Mine Faces Uncertain FutureThe owner of the Ekati mine, which opened in 1998, has filed for insolvency protection amid the significant decline in diamond prices.
MajorsMay 06, 2026
Saks Global Begins Layoffs, Reorganization Plans Closer to ApprovalThe retailer will cut 16 percent of its corporate workforce as part of its plan to exit bankruptcy.
AuctionsMay 06, 2026
Steve McQueen’s Heuer Monaco Watch Heads to Sotheby'sOf the many examples used in the filming of “Le Mans,” this one is believed to have spent the most time on Steve McQueen’s wrist.
EditorsMay 05, 2026
This Ohio Designer’s Jewelry Made It to the Met GalaMegan Piccione dressed Lauren Wasser in layers of diamond jewelry, making her stand out in a crowd that included celebrities like Beyoncé.
SourcingMay 05, 2026
Doug Hucker Returns to His RootsFollowing decades of association leadership, the “semi-retired” colored gemstone expert is turning his focus to gemstone education.
Events & AwardsMay 05, 2026
AMNH to Showcase Famous Jewelry, Trophies in Sports HistoryThe museum’s new exhibition will feature one of Jesse Owen’s Olympic medals, Yogi Berra’s crown, Super Bowl rings, and more.
Events & AwardsMay 05, 2026
JIS Launches Brand Exposure ProgramThe new program provides access to media exposure and editorial opportunities for exhibitors and retailers.
CollectionsMay 04, 2026
Melanie Georgacopoulos Turns Pearls Into Light for ‘Eclipse’ CollectionThe “Eclipse” jewelry collection captures the fleeting moment where light and shadow align though onyx, diamonds, and freshwater pearls.
ColumnistsMay 04, 2026
The Key Mindset for Better Trade Show BuyingBuying discipline at trade shows starts with clarity about your inventory levels, Smith writes.
CrimeMay 04, 2026
Pawn Shop Manager Shot, Killed in FloridaLazaro Rodriguez Vega was murdered inside Cash Out Gold and Silver in Fort Pierce. A 20-year-old man has been charged in the case.
IndependentsMay 04, 2026
Zadok Jewelers, Austin Parks Foundation Support Wildflower PreservationA portion of every engagement ring sold in its Austin showroom will support the care and preservation of Austin’s wildflowers and green spaces.
TechnologyMay 01, 2026
Gemist, Saban Onyx Partner on Retailer-Focused Customization OfferingTheir partnership combines Gemist’s customization technology with Saban Onyx’s U.S.-based manufacturing capabilities.
SurveysMay 01, 2026
Consumer Confidence Inches Up in April Despite Rising Gas PricesRespondents were concerned about the Middle East conflict and how it will impact their finances.
CollectionsMay 01, 2026
A ‘Hidden Garden’ Emerges in Tiffany & Co.’s 2026 Blue BookOur Piece of the Week, the “Butterfly” necklace, showcases a 7.02-carat oval diamond set between diamond, platinum, and 18-karat gold wings.
ColumnistsApr 30, 2026
Peter Smith: A Sleazy Salesman and the Case for Regret Avoidance Smith uses a comment he overheard in the grocery store to remind retailers that their job is to inspire buying behavior, not just sell.
MajorsApr 30, 2026
Claire’s New Summer Campaign Is a Sensory Wonderland for Gen Alpha“A Girl SMR at Claire’s” celebrates girlhood through the five senses with stacked jewelry, slime toys, scented accessories, and ASMR.
AuctionsApr 30, 2026
Vintage Cartier Watch Crashes Through Records, Selling for $2MBelieved to be one of three made in 1987, the Cartier London Crash was hot at the “Shapes of Cartier” sale at Sotheby’s Hong Kong.
