PARIS — Swiss watch exports were back in the black in August after sputtering in July.
Exports were up in value and volume, growing 4 percent to 1.8 billion Swiss francs, or just over $2 billion, the Federation of the Swiss Watch Industry said Tuesday.
Overall, the month’s figures signaled “a shift toward more regularized growth,” the Swiss organization said.
China continued on July’s downward trend, with sales dropping a further 27.3 percent.
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“Mainland China weakness may be taken as negative,” RBC Capital Markets’ director of luxury goods and premium brands research Piral Dadhania said in a note.
Bernstein analyst Luca Solca said multiple factors came into play, including a challenging comparative base after last year’s post-lockdown spending boom; the resumption of international travel and shift in consumer spending outside of the Chinese market, and middle-class consumer caution.
This comes after the country fell short of its second-quarter GDP expectations despite a 6.3 percent year-over-year growth announced in July. Consumers are expected to take a cautious stance, in light of the ongoing crackdown on the real estate and health care sectors, according to a Barclays report on luxury goods published last week.
However, China’s drop was offset by strong demand in Western markets. There was strong double-digit growth in four key markets, including the U.S., which grew 13.5 percent and remains in pole position.
Hong Kong, in third place, saw a 29 percent jump, while the U.K. and France rose 21.5 percent and 14 percent, respectively.
Volume of sales on precious metal and bimetallic watches fell 13.2 percent and 4.1 percent, respectively, while other categories rose. Growth was strongest in the “other metals” category, which rose 16.3 percent in volume and also led the charge in value terms with a 27.7 percent leap. All other categories also grew in value, except for “other materials,” which was down 3.2 percent.
Sales of watches in the under-200 francs price category continued to grow in unit numbers as well as value. Among the contributing factors for Bernstein’s Solca were the continued success of Swatch’s MoonSwatch and the introduction of a follow-up act, the Fifty Fathoms diving watch hook-up with sister brand Blancpain.
At the top end of the price range, sales of high-end timepieces priced above 3,000 Swiss francs increased 5.1 percent in value terms, while unit numbers were down 1.3 percent.