Overview
- Swatch reported H1 net sales rising about 8.5% to CHF 3.12 billion, driven by a surge in demand across its brands after the viral Audemars Piguet x Swatch 'Royal Pop' release.
- Operating profit fell to CHF 52 million and net income was CHF 16 million, figures the company attributes mainly to roughly CHF 200 million in foreign‑exchange conversion losses and higher production costs from full factory staffing.
- The Royal Pop launch generated massive social‑media attention and store traffic, lifting direct retail sales by about 18% and online sales by about 30% and bringing many younger, first‑time mechanical‑watch buyers into stores.
- Growth was broad by region with strong gains in the U.S., Spain, India, Mexico and Saudi Arabia while Greater China showed modest wholesale replenishment despite a mid single‑digit retail rise and the Middle East saw some store disruption from regional instability.
- Swatch defended its decision to preserve production capacity and jobs as a strategic trade‑off to meet accelerating demand, and it said that the May–June momentum carried into early July and should support materially stronger sales and margins in H2 2026.