Recovery in China, Hong Kong Boost Swatch Group Sales

Swatch Group’s revenue rose in 2023 amid the resurgence of demand in China and Hong Kong, and the introduction of new collections.

Revenue grew 5% to CHF 7.89 billion ($9.14 billion) for the year, the luxury group — which owns Harry Winston, Omega and Tissot — reported last week. Sales of jewelry and watches, the company’s dominant category, rose 6% to CHF 7.55 billion ($8.74 billion). Its electronics division accounted for most of the remainder. Net earnings increased 8% to CHF 890 million ($1.03 billion).

“In Asia, double-digit growth was achieved in Hong Kong, Macau, Thailand, India, Japan and China,” the company noted.

Consumer demand in Asia began to recover at the beginning of last year after the government lifted travel restrictions between Hong Kong and China. Hong Kong derives the bulk of its luxury revenue from mainland tourists who travel to purchase goods. Sales in Switzerland “skyrocketed,” with a rise of over 30%, while in the US, growth was strong, with the Omega, Tissot and Swatch brands “breaking records,” the company explained.

Demand for the group’s MoonSwatch collection remained “very high” all year, with sales reaching unprecedented levels all over the world. Stores were “besieged by customers” looking for the new Moonshine Gold editions, Swatch said. The launch of the Scuba Fifty Fathoms collection in September was also a global success, the company added.