Editor’s Note
This article highlights the Swatch Group’s robust performance, driven by its iconic watch brand and the growing success of its jewelry division, Harry Winston. The group’s diversified portfolio positions it for continued strong revenue growth.
Founded in 1983, the Swiss watch brand Swatch has established a distinct market position, with its classic watch models continuously being updated and loved by consumers worldwide. The business scope of its parent company, Swatch Group Limited, is not limited to watches. The performance of its jewelry brand Harry Winston continues to grow, making it one of the world’s most promising groups with strong future revenue prospects.
Recently, the Swatch Group announced its financial results for the fourth quarter and full year of 2023. Sales in the fourth quarter grew by over 8%. Full-year net sales increased by 5.2% year-on-year to CHF 7.888 billion. Particularly, performance in Asia was outstanding, achieving double-digit year-on-year growth in regions such as China, Thailand, India, and Japan. Unaffected by the current unstable environment, the operating profit of the Group’s watch and jewelry businesses remains robust.
Last year, the Swatch Group achieved an operating profit margin of 17.2%. Not only did the watch business perform brilliantly, but the jewelry and watch brand Harry Winston also delivered outstanding results. Looking back to 2013, the Swatch Group acquired the jewelry and watch brand Harry Winston, officially crossing the boundary of watches and expanding its business reach. Now, ten years later, Harry Winston continues to grow and is projected to surpass CHF 1 billion in revenue in 2024.
The Swatch Group invests not only in watches and jewelry but also ventured into real estate acquisitions in 2023. In October last year, it acquired the prime location at 171 New Bond Street in London, which also houses the London flagship store of its brand Harry Winston. The transaction was valued at approximately CHF 90 million. The Group’s willingness to spend a significant amount on land is not only for store operations but also reflects its optimism about the future potential and substantial appreciation space of real estate.
Facing a relatively unstable market outlook for 2024, the Swatch Group remains confident about the current year. The Group’s analysis indicates that especially its mid-to-low price segment brands, including Longines, Tissot, and Swatch, will experience strong growth this year. Not limited to a “high-price” strategy, catering to consumers in the mid-to-low price market is also a key to the Group’s success.
