By Andrea Figueras
Exports of watches made in Switzerland saw a downturn in September as trade tensions continue to weigh on the sector, and despite hopes of a potential recovery of the troubled luxury industry.
Total exports of Swiss timepieces amounted to 1.99 billion francs ($2.32 billion) in September, 3.1% lower than in the same period last year, according to data from the Federation of the Swiss Watch Industry, or FH. For the first nine months of the current year, cumulative exports recorded an overall decrease of 1.2%.
The results come after French luxury-goods conglomerate LVMH reported last week an improvement in sales growth for the third quarter, which prompted share price hikes across a number of European luxury stocks. The group's watches and jewelry division, which houses labels including Hublot and TAG Heuer, also booked better quarterly trends.
While some analysts viewed LVMH's results as a sign that the luxury industry could be turning a corner after a months-long slowdown, others argued that the sector's sales surge experienced in previous years might have come to an end due to a structural demand problem.
Despite recent optimism, the watch sector continues to face a challenging backdrop, marked by import duties in the U.S., a key market for these high-end accessories. Trading conditions remain difficult, although the comparison base seems more favorable heading into 2026, Vontobel analyst Jean-Philippe Bertschy said in a research note. "The sector approaches the holiday season amid geopolitical tensions, U.S. tariffs, and subdued consumer sentiment," he added.
Swiss watches have been subject to a 10% baseline tariff in the U.S. since April. Months after President Trump raised the rate to 39% on imports from the Alpine nation, higher than the initial 31% duty that his administration had earlier unveiled. Exports to this market recorded a fall of roughly 56%, reversing the trend seen in previous months, when the figure soared as brands continued to frontload shipments ahead of the implementation of the levies.
Excluding the expected decline in the U.S., Swiss watch exports would have grown by 7.8%, the industry body said. Most markets saw marked increases in September, but these were offset by the negative performance in the U.S., it added. In China and Hong Kong, exports climbed around 18% and 21%, respectively.
Swiss jeweler and watchmaker Richemont, home to brands such as Vacheron Constantin and Piaget, will publish results for its fiscal first half on Nov. 14. Rollex seller Watches of Switzerland Group is scheduled to report a trading update on Nov. 6.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
October 21, 2025 05:36 ET (09:36 GMT)
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