SWGNF - Slump In Chinese Hong Kong Demand Sends Swiss Watch Exports Plummeting: 'Negative Trend Is Even Worse Than We Expected' Says Analyst | Benzinga
Swiss watch exports have experienced a significant decline, particularly in China and Hong Kong, leading to a 52-week low for Swatch Group (OTC:SWGNF) (OTC:SWGAY).
What Happened: The exports of Swiss watches have recorded their most substantial drop since 2020, with a significant decrease in demand for high-end timepieces in key markets such as China and Hong Kong, reported Bloomberg.
The Federation of the Swiss Watch Industry revealed a 16% decrease in exports by value in March, amounting to 2 billion Swiss francs ($2.2 billion) from the previous year.
Shipments to China, the second-largest market for Swiss watches, fell by 42%, dropping below the levels seen in March 2020 when the industry came to a standstill due to pandemic lockdowns. Shipments to Hong Kong also plummeted by 44%.
Swatch Group, the manufacturer of Omega and Longines brands, saw its shares hit a fresh 52-week low on Thursday, dropping by about 1% in Zurich trading. Shares of Compagnie Financière Richemont SA (OTC:CFRUY), the owner of Vacheron Constantin and Cartier, also fell by approximately 1%.
"The negative trend is even worse than we expected and the decline in China is really worrying and probably indicates that inventories in the region were once again too ...