Swatch Group Increases Its Turnover But Not Its Profits in The 2026–2027 First Semester

Swatch Group has reported a first half of 2026–2027 characterised by solid commercial growth, despite an economic and geopolitical environment that remains uncertain. The Group saw its turnover rise by 8.5% at constant exchange rates (2% at current exchange rates), driven by growth in demand across all its price segments and on every continent.

This momentum enabled the group to make significant gains in market share, even as Swiss watch exports fell slightly over the period. The United States, India, Saudi Arabia and Japan were among the most dynamic markets, whilst sales in the group’s own boutiques surged by 18% and online sales by 30%.

Whilst financial results continue to be affected by a strong Swiss franc and the deliberate decision to maintain production capacity, the group reported an operating profit of 52 million Swiss francs, compared with 68 million Swiss francs a year earlier – well below analysts’ forecasts of 120 million Swiss francs (source: Reuters).

The group attributes the fall in its net profit to negative exchange-rate effects and the deliberate decision to maintain production capacity and jobs, without resorting to short-time working arrangements. The watch brand posted a net profit of 16 million Swiss francs.

At the same time, operating cash flow rose by nearly 69%, reflecting sound financial management. In terms of brands, Breguet, Omega, Longines, Tissot, Hamilton and Harry Winston all posted strong results. Swatch is also capitalising on the global success of its collaboration with Audemars Piguet on the ‘Royal Pop’, for which demand far outstrips supply, according to the official press release: “From day one, demand for the Royal Pop has far outstripped supply, and this frenzy is set to continue for months to come.” According to the group, this collaboration is helping to attract a younger clientele to Swiss watchmaking.

Supported by the upturn in sales seen in May and June, and confirmed in July, the Swatch Group is confident about the second half of the year. The group anticipates a significant improvement in its profitability thanks to the ramp-up of its production capacity and continued sales growth.