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The group reported a 1,3% sales decline, while H2 sales grew 4,7% and Q4 accelerated 7,2%.
Financials
02 October, 2026
Table of contents
The Swatch Group SA released its FY2025 Key Figures on 30 January 2026 and its full Annual Report and Sustainability Report on 18 March 2026. The Group reported a decline in annual revenue, with a reduction due to a strong Swiss franc (CHF). At constant exchange rates, the decline was considerably narrower. The second half of the year returned to growth and Q4 sales accelerated in all price segments.
Revenue reached almost €6,7 billion (CHF 6,3b), while operating profit fell to €144 million (CHF 135m) and net profit to just €27 million (CHF 25m). Yet the operating cash flow increased by more than half, inventories declined, and the Group reported enhancing demand outside Greater China. The company also maintained production capacity and employment despite weaker orders.
| KPI | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | €6,765b (CHF 7,313b) (+30,7%) | €7,464b (CHF 7,499b) (+2,5%) | €8,117b (CHF 7,888b) (+5,2%) | €7,069b (CHF 6,735b) (-14,6%) | €6,702b (CHF 6,280b) (-6,8%) |
| Operating income | €944m (CHF 1,021m) | €1,153b (CHF 1,158b) (+13,4%) | €1,226b (CHF 1,191b) (+2,8%) | €319m (CHF 304m) (-74,5%) | €144m (CHF 135m) (-55,6%) |
| Net income | €716m (CHF 774m) | €819m (CHF 823m) (+6,3%) | €916m (CHF 890m) (+8,1%) | €230m (CHF 219m) (-75,4%) | €27m (CHF 25m) (-88,6%) |
Revenue peaked in 2023 before going through two consecutive years of decline. The decrease has been much more affecting at the profit level: operating income fell from €1,226b (CHF 1,191b) in 2023 to €144m (CHF 135m) in 2025, while net income declined from €916m (CHF 890m) to €27m (CHF 25m).
The FY2025 revenue result was impacted by a €329m (CHF 308m) negative currency impact. On a comparable basis, sales decreased just 1,3% at constant exchange rates, compared with 5,9% at current rates.
Profitability was affected by The Swatch Group SA's deliberate decision to maintain production capacity and jobs despite lower orders. Watches & Jewelry excluding Production generated €586m (CHF 549m) in operating profit, equivalent to a 9,5% margin, while the Production segment recorded a negative result.
The cash-flow picture was stronger. Operating cash flow increased 52,3% to €541m (CHF 507m), while net liquidity stood at €1,274b (CHF 1,195m) at year-end. Equity remained high at €12,5b (CHF 11,7b), equivalent to an equity ratio of 87,1%.
The full-year decline hides a clear improvement through the year. H1 sales fell 7,1% at constant exchange rates, but H2 returned to 4,7% growth, with Q4 accelerating to 7,2% worldwide and across all price segments.
The Group expects growth across all price segments and believes higher capacity utilisation should reduce or reverse the negative Production result. This reflects the improvement in demand seen during the second half, with H2 sales returning to growth and Q4 accelerating across all price segments.
The Swatch Group SA also maintained its production capacities and workforce during the year despite lower orders.
Greater China remained the principal weakness, including China, Hong Kong SAR and Macau SAR. However, this was offset by stronger performance elsewhere.
Excluding China, Hong Kong and Macau, sales increased 3,4% for FY2025, 8,2% in H2 and 10,4% in Q4 at constant exchange rates. The Americas recorded a record year, led by the US, where sales increased by almost 20% in local currencies. India, the Middle East, Mexico and Poland delivered double-digit growth across all price segments, while the UK, Germany, South Korea and Taiwan improved during H2.
The regional pattern reflects the wider Swiss watch market, where exports declined 1,7% in 2025.
The Swatch Group SA's vertically integrated business model remained a significant competitive advantage. Its own distribution network generated more than 47% of sales with end consumers in 2025, while online sales exceeded previous record levels in many regions and across all brands using the channel.
Own points of sale supported the stronger Q4 performance, while China returned to local-currency growth in Q4 even though there is a reduced point-of-sale network.
The Swatch Group SA controls brands spanning entry-level watches through to high complications and high jewellery, as well as much of the manufacturing infrastructure behind them. Its model includes around 150 production sites in Switzerland, alongside its own retail and service network.
The Group highlighted several important brand developments.
Breguet entered its 250th anniversary year with a major heritage and product programme, including the Classique Souscription, which won the Grand Prix de l'Aiguille d'Or at the 2025 Grand Prix d'Horlogerie de Genève. The brand also introduced Experimentale 1.
Omega continued to build its technical proposition, most notably with the fourth-generation Seamaster Planet Ocean and seven new references.
Longines expanded its Spirit collection with the Spirit Pilot and Spirit Pilot Flyback. Swatch Group also stated that Longines generated a 16,6% profit margin on net sales in 2025, contradicting external estimates that the brand had become loss-making.
Tissot gained market share, with strong performance in Europe and North America and accelerating Q4 sales. Swatch Group specifically stated that Tissot's sales grew 3% in 2025, rather than declining 5% as estimated by Morgan Stanley.
Swatch continued to use innovation and personalisation to generate consumer engagement. AI-DADA, an AI-powered design and personalisation tool, was described by the Group as immediately successful in its launch markets, with a global rollout planned.
November 2025 - Swatch: Swatch launched AI-DADA, an AI-powered personalisation platform that allows consumers to create one-of-a-kind watch designs through text prompts. Trained on over 40 years of Swatch designs, art and creative output, the initiative extended the brand’s design-led positioning into AI and personalised products.
January 2025 - Tissot: Tissot extended its global marketing partnerships with the NBA, WNBA and NBA G League for multiple years. The agreement included a redesigned shot-clock and timing system, a Tissot NBA Supersport 2025 Special Edition and presenting-partner status for an NBA Global Game in Europe for the next 10 years.
2025 - Breguet: Breguet used its 250th anniversary as a major brand platform, centred on the introduction of its proprietary 18K Breguet gold and the Classique Souscription. The anniversary programme culminated in the watch winning the Grand Prix de l’Aiguille d’Or at the GPHG in November.
2025 - Heritage-led brand programmes: Several maisons used major anniversaries and heritage milestones to reinforce brand identity, including Glashütte Original’s 180th anniversary and related product and storytelling initiatives.
2025 - Retail and digital engagement: The Swatch Group SA reported that its own retail network generated more than 47% of sales with end consumers, while online sales surpassed Covid-era record levels in many regions and across all brands in the channel. This points to the increasing role of direct consumer channels alongside wholesale distribution.
February 2025: François Thiébaud retired from the Executive Group Management Board after 29 years with Swatch Group.
September 2025: Alain Villard retired from the Extended Group Management Board.
FY2025: Nick Hayek, Raynald Aeschlimann and Sylvain Dolla continued as President of the Executive Group Management Board, Omega CEO and Tissot CEO respectively.
The Swatch Group SA reduced Scope 1 emissions by 21,7% versus the 2021 base year, while market-based Scope 2 emissions fell 35,8%.
The Group is targeting a 50% reduction in Scope 1 and 2 emissions by 2030, with climate neutrality targeted for 2050.
Scope 3 emissions fell from 1,136,000 tonnes in 2023 to 829,000 tonnes in 2025, although the Group continues to develop its detailed Scope 3 roadmap.
More than 15% of employees completed the Swatch Group Sustainability School's foundational course by the end of 2025, supported by 15 dedicated learning paths.
In 2025, Swatch began a supplier decarbonisation project, initially engaging its main bracelet suppliers, with expansion planned for 2026.
The Swatch Group SA's FY2025 results show a business caught between weak headline profitability and a stronger underlying recovery. Revenue declined, operating income more than halved and net income fell, with the decision to maintain production capacity weighing heavily on margins. Yet the deterioration was concentrated geographically: excluding Greater China, the sales grew, while the Americas, India, Middle East and selected European and Asian markets strengthened. Retail and e-commerce also provided important routes to consumers.
The key issue for 2026 is operating leverage. The Swatch Group SA has preserved manufacturing capacity through the fall, and if H2 momentum continues, higher utilisation could turn what was a major cost burden in 2025 into a profitability advantage.
FY2025 was not yet a recovery year for The Swatch Group SA. It was the year in which the foundations for a recovery became visible.
Cover Image: The Swatch Group SA Official Website.