Royal Pop Fever And India's 38% Growth Surge Drive Swatch Group's Strong First Half Of 2026

Despite ongoing geopolitical tensions and currency headwinds, Swatch Group has delivered a resilient performance for the first half of 2026, reporting strong sales growth, significant gains in global market share and renewed momentum across its portfolio of brands. The Swiss watch giant recorded net sales growth of 8.5 per cent at constant exchange rates, while sales at current exchange rates increased by 2.0 per cent, with almost CHF 200 million wiped off by adverse currency movements. More importantly, a sharp acceleration in business during May and June has positioned the Group for a considerably stronger second half of the year.

The Group's performance stands out against the broader Swiss watch industry. While Swiss watch exports declined by 0.7 per cent during the first six months of the year, according to the Federation of the Swiss Watch Industry, Swatch Group gained significant market share across virtually every region and price segment. The company reported an operating profit of CHF 52 million, representing an operating margin of 1.7 per cent, while net income reached CHF 16 million. Swatch Group attributed the relatively modest profitability to continued investments in maintaining production capacity and employment, choosing not to reduce its manufacturing workforce despite softer demand earlier in the year. At the same time, operating cash flow climbed nearly 69 per cent to CHF 304 million, supported by disciplined working capital management, while the Group maintained a robust net liquidity position of CHF 1.125 billion and an exceptional equity ratio of 85.3 per cent.

Momentum Builds Across Watches And Jewellery

The Watches & Jewellery division emerged as one of the biggest contributors to the Group's performance. Excluding the Production segment, the division recorded sales growth of 9.5 per cent at constant exchange rates and delivered a healthy operating margin of 9.0 per cent. Performance improved even further during May and June, when operating margins climbed to 15 per cent, signalling stronger profitability as manufacturing utilisation improves.

Retail continues to be one of Swatch Group's biggest success stories. With virtually the same number of boutiques as last year, sales through its own retail network increased by 18 per cent at constant exchange rates, highlighting significantly improved store productivity. Today, nearly half of the Watches & Jewellery division's revenue is generated through the Group's own boutiques. E-commerce also continued its rapid expansion, recording a 30 per cent increase in online sales, further strengthening Swatch Group's direct-to-consumer strategy. To compare 2025 figures, click here.

India Emerges As One Of Swatch Group's Fastest-Growing Markets

Swatch Group enjoyed positive sales growth across every continent, reflecting the strength of its diversified brand portfolio. The United States led mature markets with a remarkable 27 per cent increase, while Europe remained healthy, with Spain growing by 28 per cent and Italy by 12 per cent. Asia and Oceania also posted encouraging numbers, including Japan at 20 per cent, South Korea at 12 per cent and Australia at 5 per cent.

Among the standout performers was India, where sales surged by an impressive 38 per cent, making it one of the fastest-growing markets globally. Other high-growth markets included Saudi Arabia at 41 per cent and Mexico at 26 per cent, underscoring the growing appetite for Swiss watches in emerging luxury markets.

China presented a more nuanced picture. Swatch Group's own retail operations in mainland China, Hong Kong and Macau continued to grow, with retail sales increasing by 9 per cent while maintaining a stable number of boutiques. However, replenishment orders from third-party retailers remained subdued. Meanwhile, ongoing instability across the Middle East continued to affect the Group's network of more than 200 points of sale in the region.

Brand Portfolio Powers Growth

Several of Swatch Group's flagship brands delivered particularly strong performances during the first half of the year. Breguet continued to capitalise on the momentum generated by its 250th anniversary celebrations, with the brand's bold product introductions translating into an excellent first half despite challenging luxury market conditions. Harry Winston also enjoyed exceptional results across all regions, including nearly 20 per cent growth in China.

Omega delivered one of the strongest performances within the Group, recording 20 per cent retail growth at constant exchange rates. The brand's retail network now accounts for 42 per cent of its overall turnover, supported by substantial marketing investments, including its role as Official Timekeeper of the Olympic Winter Games Milan Cortina 2026.

Longines, Tissot and Hamilton all reported double-digit growth, reinforcing the importance of Swatch Group's entry-level and mid-luxury offerings. The company believes these brands continue to attract a growing global middle class, creating a pipeline of future luxury watch buyers while expanding Swiss watchmaking's reach.

Royal Pop Creates Global Buzz

Perhaps the biggest headline of the half-year came from Swatch. The Audemars Piguet x Swatch collaboration, Royal Pop, launched on 16 May, quickly became a global phenomenon. Demand exceeded supply from the very first day, with the company expecting strong demand to continue for several months. Read more about the sensation here.

According to Swatch Group, the Royal Pop campaign generated more than 25 billion social media views worldwide. The collaboration also reignited interest in previous Swatch collaborations, boosting sales of both the MoonSwatch with Omega and the Scuba Fifty Fathoms with Blancpain. More importantly, Swatch believes Royal Pop is introducing an entirely new generation of consumers, many of them very young to Swiss mechanical watchmaking. The company sees this as an opportunity not only for Swatch but for the wider Swiss watch industry, as these new customers develop an interest in traditional watchmaking.

Positive Outlook For The Second Half

The strong acceleration witnessed during May and June, when sales increased by 13.1 per cent at constant exchange rates and operating margins reached 8.6 per cent, has continued into July. Swatch Group expects this momentum to improve factory utilisation and drive significantly stronger profitability during the second half of 2026.

With growth spanning every major region, strong performances from both entry-level and prestige brands, rapidly expanding retail and online businesses, and major gains in global market share, Swatch Group enters the second half of the year in a far stronger position than its headline profit figures alone might suggest.