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The Swatch Group AG ADR - Stock Quote SWGAY

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Morningstar's The Swatch Group AG ADR Stock Analysis

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Is it the right time to buy or sell?
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Is it the right time to buy or sell?
Find out with Morningstar Investor

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Economic Moat

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Capital Allocation

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Lockdowns in China Are a Near-Term Risk for Swatch, but Long-Term Growth Intact

Jelena Sokolova, CFA Senior Equity Analyst

Business Strategy and Outlook

| Jelena Sokolova, CFA |

The Swatch Group is the biggest vertically integrated Swiss watch manufacturer with 18 brands covering all price ranges, from entry to ultraluxury. Swatch-owned brands account for around 35% of Swiss watch exports, and the company supplies competitors with watch movements. Swatch Group’s luxury brands boast 100- to 200-year histories, iconic collections, and deep cultural heritage. Most of Swatch's brands (at price points below $10,000) benefit from a cost advantage through scale and a higher degree of production automation.

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The Swatch Group AG ADR's Company Profile

Business Description

Swatch Group’s biggest brands are Omega (number-two Swiss watch brand by sales after Rolex), Longines (the largest premium watch brand and number four by sales globally), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. Swatch group employs over 31,000 people, half of them in Switzerland. We estimate that Swatch Group makes about 28% of its sales from Omega, 18% from ultraluxury brands, 20% from Longines, 12% from Tissot, and 4% from Swatch. We estimate Omega and Longines to be the group’s most profitable brands.

Contact
Seevorstadt 6
Bienne, 2501, Switzerland
T +41 323436811
Sector Consumer Cyclical
Industry Luxury Goods
Most Recent Earnings —
Fiscal Year End Dec 31, 2022
Stock Type —
Employees 31,444

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