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SWATCH Group AG’s profit tumbled last year as the watchmaker grappled with persistent weakness in China and declining watch exports to the key US market following the imposition of tariffs.
Operating profit fell 56% to 135 million Swiss francs ($175.6 million) in 2025, below analyst estimates of 198.3 million francs, the company said in a statement Friday. Sales dropped 1.3% to 6.3 billion francs from the previous year.
Still, Swatch gave an optimistic outlook for 2026, saying it “expects substantial growth for the year” in all price segments.
The group has faced a tough couple of years, which squeezed profit margins. The watch industry was jolted earlier this year when President Donald Trump levied tariffs of as much as 39% on imports from Switzerland — the highest rate applied to any developed economy. The duties were retroactively reduced to 15%, still well above historical levels. –BLOOMBERG
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