PARIS – Swiss watch exports sputtered in July after logging sturdy gross sales development within the first half of the yr.
Exports have been down in each worth, slipping just below one p.c year-over-year to 2.1 billion Swiss francs, or $2.5 billion, and quantity, down 3 p.c.
The drop was notable contemplating the softening luxurious market worldwide, Barclay’s analyst Carole Madjo stated in a analysis be aware.
“Contemplating that that is the primary time [Swiss watch exports] flip destructive this yr, the discharge may present extra warning across the sector and notably laborious luxurious,” she wrote.
The slowdown follows development of 14 p.c recorded in June, regardless of a drop in China. The July numbers marked and the primary time China had posted a decline since pandemic-era restrictions have been lifted in January 2023.
China gross sales continued to fall in July, down 16.6 p.c. China remained was the second largest marketplace for Swiss exports, with 11.9 p.c market share in July.
July gross sales in Hong Kong have been up 6.3 p.c, although that quantity was a steep deceleration from the 46.2 p.c gross sales development posted in June.
Gross sales have been up 5.2 p.c within the U.S. on a worth foundation, a slight softening from the 8.8 p.c development final month, whereas North America confirmed a 20 p.c slowdown in quantity. The U.S. stays the most important export market, with a 15.5 p.c share.
Nevertheless, analysts framed the U.S. gross sales numbers in a optimistic gentle. “We view this as a optimistic given the weakening macro setting,” Barclay’s Madjo famous.
Exterior of China and Hong Kong, the remainder of Asia was down 6.4 p.c, with South Korea falling 24.1 p.c. Singapore was additionally down 7.1 p.c, whereas Japan was a vibrant spot, up 5.5 p.c.
Europe remained resilient total, up 2.2 p.c, with variations throughout the area. Spain was up 23.9 p.c, the U.Okay. 5.6 p.c, and Germany 5.1 p.c. France was down 14 p.c.
Worth of gross sales on metal watches fell 6.1 p.c, whereas valuable metals remained steady. Bimetallic gold and metal watches grew 4.8 p.c, whereas development was strongest within the other-metals class at 10.2 p.c. In quantity phrases, all classes fell besides the opposite metals, which have been up 21.9 p.c.
The five hundred- to three,000-franc worth class fell considerably, down 12 p.c. This section represents round one-fifth of all Swiss watch exports. Most different worth segments noticed minor variations.
