Without Hong Kong, Swatch Group’s revenue could have increased 5% in 2019. But protests weighed on watch sales. According to figures released Thursday, the Hong Kong market alone represents a 200 million franc drop in turnover in the second half of the year alone. Total group revenue was 8.24 billion francs, down 2.7% from the previous year, for net profit of 748 million francs, down 14%. Following the publication of these figures below expectations, the share price fell 4% Thursday late in the day.
“The Swatch Group was affected in the same way as its direct competitors, Rolex or TAG Heuer. All the luxury players in Hong Kong have experienced a 60 to 70% drop in turnover, “said Olivier Müller, watch expert at LuxeConsult. “Omega, Longines and Tissot are three brands that are very strong in China and are over-proportionally impacted. Unlike a brand like Patek Philippe, which has a very discreet presence in China, with only two points of sale, “he continues. The Swatch Group operates 90 stores in Hong Kong.
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