Swatch
AlphaValue
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Note: This is a daily stock update and the information stands true as of 30/01/25, 09:00 CET.
Company update:
Net sales declined by 12.2% at constant exchange rates to CHF 6.7bn (vs. consensus of -9%). The decline was primarily driven by a sharp drop in demand in Greater China and Southeast Asia, where sales fell 30% overall.Operating profit came in at CHF 304m, reflecting an operating margin of 4.5% (vs. 15.1% in FY23 / consensus of 8%).
The company attributed the significant decline in profitability to its strategy of maintaining production capacities and avoiding layoffs despite the slowdown.
Guidance 25 : Swatch expects positive top-line, profit, and cash flow development in FY25, citing encouraging sales momentum in December.
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AlphaValue, founded in 2007 by Pierre-Yves Gauthier and André Le Grand, has become the leading provider of independent European equity and credit risk research. We offer agnostic analysis of business models and valuations, helping clients assess their investment risks and opportunities.