Swiss watch exports jumped again in May as deliveries to the US rebounded and demand for luxury timepieces from China stayed strong.
Shipments surged by 14% last month to 2.3 billion francs ($2.6 billion) in value, the Federation of the Swiss Watch Industry said Tuesday. The increase underscores continued demand for pricey watches from brands including Rolex, Omega, Patek Philippe and Cartier despite concerns that shaky economic growth may dampen consumer interest.
In first five months of the year, the key Swiss sector’s exports rose 11% to 10.9 billion francs. Last year shipments reached a record.
Exports to the US, the biggest market for Swiss watches, increased 9.8% in May. That followed a decline in April, the first in more than two years.
“This suggests that high-end American consumers, still seemingly in the YOLO [You Only Live Once] mindset, have resumed traveling and spending as summer approaches,” wrote Luca Solca, an analyst at Bernstein.
Shipments to China, the second biggest market, more than doubled as the country’s retailers restocked after years of on-again, off-again lockdowns during the pandemic. Despite the increase, exports to China were 10% lower compared with May 2021.
Deliveries to European markets rose 8.8%, as a surge in Italy offset a decline in France, the Federation said.
The only price category that declined was timepieces between 200 francs and 500 francs. Shipments of watches priced above 3,000 francs rose 15%, while those below 200 francs jumped 27%, likely boosted by sales of Swatch Group AG’s Omega MoonSwatch.
(Updates with analyst comment in fifth paragraph)
