Swatch Group: H1 26 Conference call snippets

Research evidence excerpt

Swatch Group: H1 26 Conference call snippets

J P M O R G A N Europe Equity Research

21 July 2026

Swatch Group Underweight

UHR.S, UHR SW

H1 26 Conference call snippets Price (21 Jul 26):CHF189.00

Price Target (Dec-27):CHF130.00

This afternoon, Swatch management hosted a call with analysts and investors post European Luxury & Sporting Goods

ACthe release of its H1-26 results. We summarise our key takeaways from the call in Chiara Battistini

this note. As usual, management’s tone was bullish, flagging strong exit rates in (39-02) 8895-2700

May, June and July, and indicating that group EBIT margin could improve to 9- chiara.x.battistini@jpmorgan.com

10% by year end if the current trends in sales growth and production utilisation J.P.(AsiaMorganPacific)SecuritiesLimited plc/ J.P. Morgan Securities

continue. This, however, should be viewed as “objective”, not guidance. By region,

Wendy Liu

Mainland China remains the drag (-5% in H1) where the group is reducing the (44-20) 3493-9733

wholesale distribution of Omega, Longines and Tissot. Management do not expect wendy.liu@jpmorgan.com

an inflection in China in H2, and expect H2 growth to be driven by other regions J.P. Morgan Securities plc

– including North America, Europe, Japan and Korea. When explaining the drivers Apurva Vishwaraj

of limited earnings growth in H1 despite a +8.5% cFX topline growth, apurva.vishwaraj@jpmchase.com

management pointed to 1) loss from the production segment due to the group’s J.P. Morgan Securities plc

deliberate decision to maintain the production capacities and jobs, and 2) FX Victoria Saden

headwinds, although management did not quantify the EBIT impact. In H2, (44-20) 3493-0435

victoria.saden@jpmorgan.com

management expect moderate cost savings but wage inflation could remain a J.P.