Swatch CEO Says MoonSwatch Brand Outperforming Swiss Market

The head of Swatch Group AG said the company’s Swatch and Tissot brands are outperforming the wider market for Swiss timepieces with exports for the entry-level watches rising sharply last month.

(Bloomberg) — The head of Swatch Group AG said the company’s Swatch and Tissot brands are outperforming the wider market for Swiss timepieces with exports for the entry-level watches rising sharply last month.

Exports of Swatch brand products, driven by new releases and the continued success of the MoonSwatch collaboration with sister brand Omega, rose 61% by value and 39% by volume in July, Chief Executive Officer Nick Hayek said in an interview.

The flagship Swatch brand’s performance contrasts with overall Swiss watch export data released Tuesday which saw shipments fall by 0.9% in July, the first monthly contraction in more than two years. 

Exports of Swiss watches priced at less than 200 francs ($227), which includes most Swatch products, fell 2.6% in value in July compared to the year before, the Federation of the Swiss Watch Industry reported, citing a significant drop in shipments to China.

“The lower-market segment is stronger than before,” Hayek said of the company’s entry-level priced products when asked about the export data. He added that demand for its other Swatch models, including a new square-cased version called the ‘What If?’, are helping to drive overall brand sales up by double digits.

The CEO said the company’s Tissot brand, best known for its PRX model, also outperformed, with July exports rising 23% by volume and 36% by value. 

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