1st February 2022
Daniel Pfund, Senior Financial Analyst
This week Swatch published reassuring figures (sales up 15% for the second half of 2021 and 30.7% for the full year). Last week it was Compagnie Financière Richemont that also announced sales above analysts’ expectations (sales up 35% in the fourth quarter of 2021). Other European luxury groups have also confirmed this good trend, such as Prada and Brunello Cucinelli. The luxury giant LVMH will announce its results on Thursday evening.
What distinguishes Swatch from Compagnie Financière Richemont is its positioning. Swatch is positioned more on entry-level luxury products, while Richemont is distinguished by higher watch prices and a strategic position in jewelry with its brand Cartier. For several years now, we have seen that it is the high-end luxury segment that has been gaining market share. Entry-level watches are losing ground, competing with connected watches. Investors are also selective as the Swatch name appreciated 15.7% last year, while Richemont gained 74.6%!