Swatch Group sales rise but profit disappoints as Armani doubles net income
Swatch Group posted first-half sales growth held back by currency effects, while Giorgio Armani's holding company more than doubled annual profit in its first results since founder Giorgio Armani's death.
Swatch Group, owner of Omega, Longines and Tissot, reported first-half sales up 8.5% year on year, according to CPP-Luxury, but the Swiss watchmaker missed profit forecasts as negative currency effects ate into margins, sending its shares lower. The result illustrates a familiar pattern in the watch industry this year: demand has proven more resilient than many feared, but a strong Swiss franc and volatile exchange rates continue to compress profitability even when top-line sales hold up. Omega in particular is understood to have driven much of the improvement, with the brand benefiting from steady demand in its core price segments.
Separately, Giorgio Armani SpA reported that group profit more than doubled to around €67 million in 2025, with roughly half of that distributed as dividends, according to a company filing cited by CPP-Luxury. It is the first full set of annual results published since founder Giorgio Armani died last year, and the sharp profit improvement will be read as an early signal that the house's succession and management structure are functioning without founder involvement. The company has not disclosed the specific drivers of the improvement, but the scale of the increase, doubling net income in the year following the founder's death, is a meaningful data point for a business whose long-term ownership and strategic direction remain closely watched across the industry.
Together, the two results underline a broader divide opening up in luxury this year: pure-play, privately controlled houses with tight cost discipline are outperforming on profitability even as listed groups exposed to currency swings and Chinese retail struggle to convert stronger sales into equivalent profit growth. What to watch next is whether Swatch addresses its currency exposure directly in guidance, and whether further detail emerges on Armani's ownership and succession plans following the founder's death.
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