The first months of 2022 confirm the rebound in watchmaking and in particular in the higher segment, identified with timepieces produced in Switzerland, which has always held the leadership in quality. The new data for June and the entire first half of the Federation of the Swiss Watch Industry (Fh) are expected by analysts in line with those of May.
On 21 June, the Fh explained that in the previous month, exports of timepieces had reached 2.04 billion francs (approximately 2.07 billion euros), 13.6% more than in May 2021. The new monthly advance had allowed exports for the period January-May 2022 to reach 9.77 billion francs (9.9 billion euros), with an increase of 12.8% over the same period of 2021.
Exports increased in 2021 and 2022, despite the conflict
The export data provided every month by the Fh are a relevant indicator for the entire sector: the Swiss watch center represents more than half of the sector’s worldwide turnover and exports more than 90% of its production (in the first five months of the first market was the USA, followed by China and Hong Kong, with Italy in tenth place). After the fall of 2020 caused by the pandemic, exports recorded a strong recovery in 2021, continued in the first part of 2022, despite slowing global economic growth compared to previous forecasts and despite further geopolitical tensions related to the war in Ukraine. Maintaining this step would clearly be a positive fact, we will see if confirmed by today’s data and by those of the first seven months, which will be announced on August 18, as per the precise calendar of the Fh (available at www.fhs.swiss/eng/statistics.html).
For Richemont, revenues up 20%, with Europe being the driving force
But two important confirmations have already come from Richemont e Swatch Group, the most important players in the sector. The first – which has in its portfolio, among others, Cartier, Iwc, Panerai and Jaeger-LeCoultre – announced on July 15 the results for the first quarter of fiscal year 2022-23 (April-June), with revenues up by 20% at constant rates and 12% at current rates at € 5.26 billion and above analysts’ expectations. The increase in sales in Europe, America, Japan and the Middle East offset the decline in the Asia Pacific region (-37% for mainland China, due to the new series of lockdowns). In June alone, when the restrictions were gradually relaxed, the decline eased to -12%. In the quarter, sales grew 42% in Europe, supported by robust domestic demand and the return of purchases by tourists, especially Americans and Middle Easterners, while the Americas saw a 25% increase thanks to strong domestic spending. On the day of the quarterly, most of the analysts, from Bernstein to Ubs, via Goldman Sachs and Jefferies, confirmed the positive rating for Richemont and the buy.