PARIS — Switzerland’s luxury watchmakers are flying high.
Boosted largely by a strong appetite for high-end pieces in the U.S. and ongoing, albeit slower, demand in China, Swiss watch exports continued their uptick in December, capping off what the Federation of the Swiss Watch Industry described as “a record year.” Numbers outpaced pre-pandemic levels by a long stretch, particularly in the latter part of the year.
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“The continuing strong trends should be seen as a positive, confirming the recovery of the watches market,” said Barclays analyst Carole Madjo in a research note.
Exports of Swiss-made timepieces grew 8.5 percent in December to 1.91 billion Swiss francs, or $2.08 billion at current exchange, compared with the same month in 2019, the industry body reported.
“The return to pre-crisis levels during September and positive performance in the fourth quarter produced the best annual results for the sector, at 22.3 billion francs [$24.23 billion], 2.7 percent higher than in 2019 and a 0.2 percent improvement over the 2014 record,” the federation stated.
The strong results in December were to be read in the context of much tougher comparisons than those for November, when exports increased 8.7 percent on 2019, Madjo said.
The numbers confirm the uptick reported by some of the segment’s biggest players in recent days.
“The trend of the industry is positive, and one of the reasons is that money is still there, as is the client’s desire to acquire beautiful objects, especially when they have less opportunity to travel and live experiences,” LVMH Moët Hennessy Louis Vuitton-owned Zenith’s chief executive officer Julien Tornare told WWD ahead of LVMH Watch Week, which ends Friday.
Last week, Compagnie Financière Richemont reported sales for its specialist watchmaking arm rose 29 percent to 977 million euros in the three months to December, compared with the prior-year period, and by 19 percent compared with two years ago. The division saw double-digit growth in most regions and watch maisons.
Swatch Group, with its portfolio across price points, said its sales in the fourth quarter exceeded 2019 levels, without releasing numbers. Its full-year sales were still down 7.4 percent on 2019, however.
“Swatch Group’s high-end watch brands are performing well, however, it continues to face structural headwinds for its entry and mid-price watches,” said RBC analyst Piral Dadhania when the company’s numbers were published Tuesday.