Police were called to shops in the UK and Europe at the weekend as crowd trouble broke out over the launch of a new watch.
The Swatch Group AG has seen exceptional price performance YTD, rising by 29% YTD to touch one-year highs, compared to a 9% drop in the S&P Global Luxury Index. Early signs of the forecast luxury sector recovery are already playing out as peers like LVMH see a small uptick in revenues, supported by the Asia ex-Japan market. The stock's dirt-cheap market valuations also work in its favour, while the revival of the luxury market raises hopes of revenue growth and possible margin expansion.
The Swatch Group AG is upgraded to a 'Buy', driven by a robust H2 2025 turnaround and exceptionally low forward P/E. SWGAY's Q4 2025 saw healthy sales growth, with China and the Americas seeing encouraging trends. While the margin contracted, it can at least partly be attributed to investments and strategic decisions. Substantial growth and margin expansion are expected for 2026, while the forward P/E is low. Risks from both competitors and the market exist, but there's still a Buy case here.
| Textiles, Apparel & Luxury Goods Industry | Consumer Discretionary Sector | Georges Nicolas Hayek Jr. CEO | XFRA Exchange | 870123106 CUSIP |
| CH Country | 31,796 Employees | 18 May 2026 Last Dividend | - Last Split | - IPO Date |