By Andrea Figueras
Exports of Swiss watches continued to decline in November, following the downward trend of previous months and in line with a wider slowdown in the luxury industry.
Total exports of timepieces reached 2.41 billion Swiss francs ($2.67 billion) in value, down 3.8% compared with the same month last year, according to data from the Federation of the Swiss Watch Industry, known as FH.
Poor performances in China and Hong Kong, both of which recorded declines, weighed heavily on the global trend, the industry body said Thursday.
The Chinese market, once a growth engine for high-ends brands, has become a headache for luxury companies. The country's economic malaise has prompted consumers to save rather than splurge on pricey goods, leading to a sharp decline in demand for luxuries.
The U.S. was the only one of the top 10 markets to post an increase, where exports rose 4.7% in November.
Some smaller markets including South Korea, Spain and India reported positive figures, FH said.
Watches in all price segments experienced declines, with those in the 500 to 3,000 Swiss francs segment recording the sharpest drop. Timepieces priced at more than 3,000 Swiss francs performed better, with almost stable export turnover.
"The coming months will present significant challenges for the watch industry, particularly for smaller suppliers and mid-range brands," Vontobel analyst Jean-Philippe Bertschy said in a research note. Swiss watch exports are expected to remain flat in 2025, he added.
"In view of the recent figures, the outlook for the Swatch Group is a cause for concern," Bertschy said. Meanwhile, Richemont--owner of Cartier and Van Cleef & Arpels--should be able to navigate current market challenges, thanks to its strong jewelry brands and its high-end positioning in watches, the analyst said.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
December 19, 2024 05:01 ET (10:01 GMT)
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