Tuesday, 25 November 2025 Reading time : 3 minutes

The Swiss watch industry is in a difficult position: the United States, which accounts for 17% of Swiss watch sales, is becoming a more challenging market due to high import tariffs. By comparison, China, the second-largest market, accounts for only around 8%, according to Swiss foreign trade statistics for 2024. 

Current export figures highlight the issue: exports to the US shrank by 47% in October compared to the previous year, following a 56% slump in September. Overall, exports declined by 4.4% compared to the same period last year, according to data from the Federal Office for Customs and Border Security (FOCBS) and the Federation of the Swiss Watch Industry (FH).

Details are unclear
The announced memorandum of understanding between Switzerland and the USA, which aims to reduce tariffs on Swiss goods from 39% to 15%, offers a glimmer of hope. But despite the positive outlook, euphoria remains subdued. It is still unclear when the new tariffs will come into force, making planning difficult for companies.

This uncertainty is also reflected in the stock market: the share prices of the two industry leaders, Richemont and Swatch Group, declined following the announcement of the deal. However, the performance of the two companies throughout the year could hardly have been more different.

Richemont resists adverse environment
Richemont, known for its jewellery brands such as Cartier and Van Cleef & Arpels, has performed robustly this year. In the six months from April to September, the group increased its sales by 10%, exceeding market expectations, according to Bloomberg. Richemont has benefited from strong growth in its jewellery business (+14%), which accounts for around 70% of total sales. The watch segment, which includes luxury brands such as IWC Schaffhausen and Jaeger-LeCoultre, plays a less significant role, accounting for around 15% of sales.

Richemont's stock has been in high demand: it has risen by over 20% since the beginning of the year, significantly outperforming the Swiss market as a whole (SPI: +12.7%, as of 24 November 2025, total return).

Swatch Group remains under pressure
Swatch Group has been less successful. The watchmaker published its latest figures in July, reporting a decline in sales and profits for the first half of the year. According to Bloomberg, the group cited sluggish consumer spending in China and the strength of the Swiss franc as the reasons for the drawback. The announced tariff reduction has little impact on Swatch shares so far; since the beginning of the year, they have risen by just under 5%. 

Investors who believe that Richemont and Swatch Group will see moderate price gains in the coming months may be interested in the reverse convertible on the two shares.

Reverse Convertible on Swiss Watchmakers
13.00% p.a. Reverse Convertible on Richemont and Swatch Group
Strike: 95%
Valor: 149 283 650

Indicative terms

 

Disclaimer
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