Swiss watch exports climb again in July

Swiss watch exports rose by 9.6% in July to 2.6 billion Swiss francs, according to the Federation of the Swiss Watch Industry. The gain was strong enough to push the cumulative total for the first seven months of the year back into positive territory, reversing a run of soft comparisons that had unsettled the sector through much of the past two years.

The industry has spent that period contending with a slowdown in China, cautious restocking by wholesalers and distributors, and price-sensitive shoppers trading down or delaying purchases. A month of solid export growth does not undo that structural adjustment, but it does suggest that demand in key markets, particularly the US and parts of the Gulf, is proving more resilient than feared, and that inventory levels across the trade may finally be normalising after a period of overstocking.

For luxury groups with significant watch exposure, including Richemont, Swatch Group and LVMH's watch division, the figures offer a modest tailwind heading into the autumn trade fairs and the crucial holiday order cycle. Executives will want to see whether the July bounce extends through August and September before declaring the destocking phase over. What to watch next is whether growth broadens beyond a handful of markets, and whether it holds once easier year-on-year comparisons fall away.

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