Swiss Watch Exports Drop in May on Persisting Weak Demand

By Andrea Figueras

Exports of Swiss watches recorded a significant decrease in May, following an exceptional surge in the previous month, amid persisting weak demand for high-end timepieces.

Total exports of Swiss watches fell 9.5% to 2.1 billion Swiss francs ($2.56 billion) in May compared with the prior-year period, according to data from the Federation of the Swiss Watch Industry, known as FH.

Since the start of the year, the trend has remained positive on average, with growth of 1.1% at the end of May, bringing the cumulative total to 10.8 billion Swiss francs. "However, this result does not reflect the actual sales situation, which has followed a less positive trend," the industry body said.

"Such a cautious or negative statement from the Federation is unusual and noteworthy," Vontobel analyst Jean-Philippe Bertschy said in a note.

All main markets recorded a sharp drop in exports. The U.S., the largest market for Swiss watches, accounted for over 40% of the global decline, falling by more than 25%.

Although more moderate than expected, this boomerang effect followed the 150% increase seen in April, when exports escalated due to early shipments ahead of the potential implementation of tariffs on imported goods to the country.

At the time, the FH said that the sharp rise in exports was more a reflection of a one-off response to an uncertain commercial situation rather than a sign of strengthening demand.

In April, President Trump said that Switzerland would be subject to 31% levies on its exports to the U.S. Trump has since implemented a 90-day pause on the measures for countries open to negotiating trade deals.

"While the decrease in the U.S. reflects the sharp increase in April due to higher tariffs, the downward trend in other markets is a growing concern," Vontobel's Bertschy said.

In China, exports of Swiss timepieces tumbled around 17%. The country, which was once a money-spinner for luxury brands, is grappling with economic difficulties that have led buyers to close their wallets.

The less positive outlook for the sector was in place even before the disruptions caused by tariffs and recent events in the Middle East, Bertschy added.

By price points, exports of watches worth between 500 Swiss francs and 3,000 Swiss francs remained steady compared with May last year. The other main price segments recorded a drop by 11.4% on average.

Write to Andrea Figueras at [e-mail]

(END) Dow Jones Newswires

06-19-25 0441ET