Swatch Sales Rebound With Reopening in China — Retail Bum

Watchmaker Swatch Group saw its shares reach the highest level in 2.5 years after the company reported signs of a strong recovery in China.

The company noted that January sales in China had already surpassed the high levels seen a year ago — a trend the company expects to continue through the rest of the year, boosted by a surge in demand across China, Hong Kong, and Macau.

“Group Management anticipates strong sales growth in 2023 in all regions and segments,” Swatch said, adding that the company saw a quick rebound in demand in Hong Kong and Macau as pandemic restrictions were relaxed.

“In addition, lifting of travel restrictions in China will revitalize sales in tourist destinations. The sales growth in January in China reinforces the Group’s expectation to aim for a record year in 2023.”

In 2022, the largest watchmaker in the world saw its overall sales increase by 2.5% to $8.16 billion and net profit rise by 6.3 percent to $893.5 million, according to Reuters.

While the company missed its goal of achieving double-digit sales growth, Bernstein analyst Luca Solca noted that the company still has plenty of reasons to remain optimistic in 2023.