The fast-ticking American economy gave Swiss watch exports a boost in July, offsetting lingering weakness in Greater China, and softness across Asia.
A 26.5 percent increase in the U.S., its third consecutive month of double-digit gains, contributed to an overall 9.6 percent jump in exports to 2.63 billion francs, the Federation of the Swiss Watch Industry reported Thursday.
France recorded an increase of 104.6 percent, which the federation and Bernstein analyst Luca Solca cautioned likely overstates underlying trends. RBC Capital Markets attributed the robust gains in France to its “role as a logistics hub.”
It is understood many watch brands choose to export first to France and then on to other regions, which consequently creates a distortion in regional trends.
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Still, the impressive performance counterbalanced declines elsewhere in Europe, and the region recorded a 12.4 percent improvement, lifted mainly by an 11.6 percent rise in exports to Germany.
The U.K., which accounted for 6.1 percent of Swiss watch exports in July, was up 9.5 percent.
“Swiss watch demand remains on track for a gradual recovery,” Solca said in a research note, highlighting that eastern Asia’s recover “although uneven, remains broadly on the right trajectory.”
He attributed the robust health of U.S. figures to “continued strength at the high end, supported by equity market wealth creation and the positive backdrop of the 2026 FIFA World Cup.”
Exports to Japan fell 3.7 percent, while Hong Kong and Singapore recorded modest growth of 0.5 percent and 2.3 percent respectively.
The United Arab Emirates saw watch exports dip 3.7 percent. Citi analyst Thomas Chauvet attributed the setback after four months of sequential improvements to the ongoing geopolitical disruption in the Middle East.
Analysts credited the Swatch x Audemars Piguet Royal Pop collaboration, which unleashed pandemonium when it dropped last May, for contributing to momentum in the 200 to 500 Swiss francs price bracket, which jumped 26.1 percent in July, in contrast to four years of “significant decline,” according to the federation.
Watches priced over 3,000 Swiss francs grew by 12 percent last month, versus a 3.9 percent decline for timepieces in the 500 to 3,000 price segment.
