By Andrea Figueras
Swiss watch exports recorded an increase in February after a lackluster start to the year and ahead of a potential hit from the current geopolitical turmoil.
Total exports of timepieces made in Switzerland rose to 2.2 billion Swiss francs ($2.77 billion) in February, according to figures from the Federation of the Swiss Watch Industry, or FH, released Thursday. This was 9.2% higher compared with the same period a year earlier and in contrast to the overall trend in total exports of Swiss products, which fell by 2.7% over the month.
The monthly result was mainly boosted by strong growth in three of the core markets that tipped the balance, the industry body said.
Exports to the U.S. jumped nearly 27% in February compared with the same month last year, as trends in the country continue to shift rapidly due to trade conflicts. The watch industry has been buffeted by the uncertainty around President Trump's tariffs on imported goods, which proved particularly harsh on products from the Alpine nation when Washington unveiled its first round of tariffs. Later, the initial rate of 39% was reduced to 15%, bringing it in line with that of neighboring countries in the European Union.
Aside from the levies, the industry also faces geopolitical instability, marked by the war in the Persian Gulf. A prolonged conflict could threaten the luxury industry's potential rebound this year, given how much of the sector's recent growth has come from the region, Vontobel's Jean-Philippe Bertschy said. Aside from the effect on domestic demand, the war could also weigh on sentiment globally, leaving shoppers less inclined to purchase luxury goods, he added.
Although still relatively small in size--accounting for around 5% to 10% of luxury groups' sales--the Persian Gulf is a crucial growth engine for the sector, Bertschy said. The market is particularly important for the hard luxury category, which includes items like watches and jewelry, he said.
Meanwhile, the performance in Hong Kong and China remained fragile, with declines in exports to both markets and despite a positive performance in January which suggested a more upbeat outlook, FH said.
Chinese consumers, who had previously fueled sales of luxury goods, have cut back on spending on such products in recent years due to the country's economic struggles. The slump in China has taken its toll on the results of most high-end brands, which relied heavily on this market as a growth driver.
Write to Andrea Figueras at andrea.figueras@wsj.com
(END) Dow Jones Newswires
March 19, 2026 04:55 ET (08:55 GMT)
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