PARIS — Swiss watch exports cooled considerably in August.
Shipments of wristwatches fell 16.4 p.c, reaching 1.57 billion Swiss francs or $1.98 billion, and over 13 p.c in items within the month, in response to figures revealed Thursday by the Federation of the Swiss Watch Business.
On the one hand, a rush to ship to the U.S. in anticipation of the 39 p.c tariff fee determined by U.S. President Donald Trump didn’t materialize, after upticks in April and July. Exports to the nation slumped 23.9 p.c to 245.1 million Swiss francs.
On the opposite, all different territories within the high six, who account for round half of the worldwide marketplace for Swiss watches, noticed double-digit declines.
Most affected was China, which slumped 35.6 p.c to 115.3 million Swiss francs.
Throughout Europe, exports within the month dropped. Germany shank by practically 25 p.c, whereas France noticed a 9.7 p.c lower to 73.7 million Swiss francs. Italy recorded a 3.1 p.c rise to 72.6 million Swiss francs.
The Center East confirmed a blended image with the United Arab Emirates shinking 8.7 p.c whereas Saudi Arabia leaped over 48 p.c, albeit on a extra modest base.
Describing the efficiency of the American market as a “normalization” after the frenzy to beat tariffs earlier within the yr, RBC analyst Nikolaos Lafioniatis stated that “apparently, [rest of the world] Swiss watch exports declined materially in August, which can be a operate of decrease product flows on the expense of front-loaded U.S. stock construct, which we’ve got additionally heard from current Asia watch retailer channel checks.”
He additionally flagged “ongoing demand weak point in Asia-Pacific, and tepid demand tendencies in Europe.”
Two-year good points have been eroded by mid-single to high-double digit components and August’s figures have additionally present that three-year good points have been dented.
Save for the U.Ok. and Hong Kong, respectively flat and up 2 p.c, the U.S., Japan and China’s exports fell beneath 2022’s figures for a similar interval.
No supplies class was spared, with the trade physique highlighting “very destructive outcomes, each in quantity and worth.”
Likewise, all value segments, with watches priced over 3,000 Swiss francs – thought of a key class habitually driving progress – and entry-price fashions beneath 200 Swiss francs most affected.
