CollectionsApr 26, 2024
Piece of the Week: Jacquie Aiche’s Starry Galaxy NecklaceThe necklace is featured in the brand’s “Rebel Heart” campaign starring Adam Levine and Behati Prinsloo.
FinancialsFeb 01, 2021
Swatch Sales Fall 29% in 2020
The watch company closed 384 stores and cut its workforce by 10 percent.
The Omega Speedmaster Moonwatch is expected to be a sales driver this year. Swatch Group’s net sales fell 29 percent in 2020. (Image courtesy of Swatch)
Biel/Bienne, Switzerland—Swatch Group posted a double-digit drop in full-year sales as the COVID-19 pandemic weighed on watch sales, leading to store closures and layoffs.
For the full year, Swatch’s net sales fell 29 percent year-over-year at constant exchange rates to 5.59 billion Swiss francs ($6.29 billion).
In the second half of the year, net sales were down 14 percent on a comparable basis, but showed improvement compared to the first half, when sales sank 43 percent.
The company has been downsizing as a result of the pandemic, closing 384 stores in 2020. However, it opened 55 stores in growing markets.
The closure of retail stores and the end of its licensing agreement with Calvin Klein led Swatch to cut 10 percent of its workforce, about 3,000 jobs. It now has approximately 32,400 employees.
December brought renewed lockdowns in important markets, including Germany and Great Britain, but monthly sales were resilient, said Swatch.
In the United States, December 2020 sales were in line with December 2019 sales, and Tissot saw its best-ever month in the U.S.
In mainland China, sales were up by double digits for both the second half and the full year.
The production sector reduced its losses compared to the first half of the year, but the situation in the second half was mixed.
Some areas that produce for third parties posted below-average capacity utilization, while other areas saw demand exceeding production capabilities.
Production bottlenecks affected several brands, including Blancpain, Omega, Longines and Tissot. In addition, a cyberattack interrupted Omega production for 10 days, leading to delivery delays and lost sales.
Production of watches, jewelry and components gradually increased over the past few months, said Swatch, but will only reach capacity again in the first half of 2021.
Online sales were strong, up 70 percent, but were not able to offset the losses in traditional retail.
And Swiss Timing, the Swatch company involved in the official timing of events like the Olympics, lost business as most major sporting events were canceled.
Looking to the year ahead, the company expects a “strong catch-up” worldwide for watches and jewelry.
Swatch pointed to the recovery in mainland China as evidence the market can improve when COVID-19 is under control.
Demand is expected to strengthen as travel restrictions ease.
The watch company has several new products on tap, including the Omega Speedmaster Moonwatch and the Longines Spirit, which are expected to be sales drivers in 2021.
The Tissot T-Touch Connect Solar is set to launch
Editors' Picks
Sponsored by
in additional markets in 2021, including the U.S. and China.
The company’s “SwatchPay!” models, offering a contactless payment feature, have been in high demand, said Swatch.
While the watches need to be set up at a Swatch store currently, the company is working on allowing them to be configured online.
In the production sector, a new line for solar watch dials is on the way as are new technologies in the polishing sector.
The company expects to see “significantly improved” margins, noting that the year-end order book in the production sector is down only 4 percent compared with last year.
Swatch is expected to report its first-half results July 30.
The company’s “SwatchPay!” models, offering a contactless payment feature, have been in high demand, said Swatch.
While the watches need to be set up at a Swatch store currently, the company is working on allowing them to be configured online.
In the production sector, a new line for solar watch dials is on the way as are new technologies in the polishing sector.
The company expects to see “significantly improved” margins, noting that the year-end order book in the production sector is down only 4 percent compared with last year.
Swatch is expected to report its first-half results July 30.
More on Financials
The Latest
Events & AwardsApr 26, 2024
AGS Conclave and GIA Symposium Are ConvergingThe two organizations will host a joint event, “Converge,” in September 2025.
SourcingApr 26, 2024
Anglo American Reportedly Shopping De Beers as BHP Eyes Anglo Big changes appear to be on the horizon for the diamond miner and its parent company, Anglo American.
Brought to you by
The Blueprint for Success in Scalable, Personalized Jewelry RetailWith Ho Brothers, you can unlock your brand's true potential and offer customers the personalized jewelry experiences they desire.
Events & AwardsApr 25, 2024
Alexis Padis Takes Over as AGS Board President Padis succeeds Lisa Bridge, marking the first time the organization has had two women board presidents in a row.
Weekly QuizApr 26, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
EditorsApr 25, 2024
5 Tips for Creating Fans from the Top (Savannah) Banana Jesse Cole, founder of Fans First Entertainment, shared the “five Es” of building a fan base during his AGS Conclave keynote.
WatchesApr 25, 2024
Audemars Piguet and John Mayer Partner on Limited Edition WatchThe Royal Oak Perpetual Calendar "John Mayer" was celebrated at a star-studded party in LA last week.
Brought to you by
How Jewelers of America Represents Your BusinessFor over 30 years, JA has advocated for the industry, fought against harmful legislation and backed measures that help jewelry businesses.
SourcingApr 25, 2024
De Beers Lowers Production Guidance for 2024The announcement came as the company reported a 23 percent drop in production in Q1.
MajorsApr 25, 2024
Detroit Lions’ QB Jared Goff Keeps Going to JaredThe three-time Pro Bowler continues to partner with the retailer, donating to a Detroit nonprofit and giving watches to fans.
CrimeApr 24, 2024
Jewelry Crime Declines Significantly, But Dollar Losses Remain High A double-digit drop in the number of in-store crimes was offset by a jump in off-premises attacks, JSA’s 2023 crime report shows.
CollectionsApr 24, 2024
Pippa Small Announces ‘Venus’ CollectionInspired by the Roman goddess of love, the designer looked to the sea for her new collection.
Events & AwardsApr 24, 2024
JCK Industry Fund Announces 2024 Grant RecipientsThe selected nine organizations have outlined their plans for the funds.
SourcingApr 24, 2024
Rio Tinto’s Q1 Production Drops Amid Pause to Honor Lost Colleagues The mining company’s Diavik Diamond Mine lost four employees in a plane crash in January.
WatchesApr 24, 2024
These Are Rolex’s New Watches for 2024 The crown introduced a dozen timepieces in Geneva, including a heavy metal version of its deep-sea divers’ watch.
ColumnistsApr 23, 2024
The Smart Lab: Advanced Email Marketing Strategies for Mother’s DayEmmanuel Raheb recommends digging into demographic data, customizing your store’s communications, and retargeting ahead of May 12.
IndependentsApr 23, 2024
Hannoush Jewelers Opens New Store in New York Located in the town of Queensbury, it features a dedicated bridal section and a Gabriel & Co. store-in-store.
SourcingApr 23, 2024
Lucapa Sells 3 Diamonds for $10.5M in First Lulo Tender of 2024A 203-carat diamond from the alluvial mine in Angola achieved the highest price.
GradingApr 23, 2024
GIA Has a New Book About William RuserRuser was known for his figural jewelry with freshwater pearls and for his celebrity clientele.
CollectionsApr 22, 2024
Jacquie Aiche’s New Campaign Stars Adam Levine, Behati PrinslooThe “Rebel Heart” campaign embodies rebellion, romance, and sensuality, the brand said.
EditorsApr 22, 2024
The 22 Best Quotes from AGS Conclave 2024 Editor-in-Chief Michelle Graff shares the standout moments from the education sessions she attended in Austin last week.
SourcingApr 22, 2024
Virtual Diamond Boutique Rebrands as ‘VDB’The overhaul includes a new logo and enhanced digital marketplace.
MajorsApr 22, 2024
Signet Raises Nearly $9M for St. Jude Children’s Research HospitalThe money will go toward supporting ongoing research and aftercare programs for childhood cancer survivors.
CollectionsApr 19, 2024
Piece of the Week: Retrouvaí’s Treasure NecklaceA new addition to the “Heirloom” collection, this one-of-a-kind piece features 32 custom-cut gemstones.
CrimeApr 19, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
MajorsApr 19, 2024
Unique Designs Acquires China PearlThe move will allow the manufacturing company to offer a more “diverse and comprehensive” range of products.
GradingApr 19, 2024
AGS Ideal Report Now Available in Printed FormFrom now through mid-May, GIA will be offering the reports at a 50 percent discount.
