Earnings release
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Ad hoc announcement pursuant to Art. 53 of the Listing Rules 1 PRESS RELEASE | AD HOC SWATCH GROUP: Half-Year Report 2026 Strong sales growth and important gains in market shares Swatch Group recorded a strong increase in sales, driven by a solid momentum across all price seg- ments and on every continent. The diversified portfolio of brands, the launch of innovative new products and the increasing efficiency of the Retail busine ss supported this performance. The strongly marked acceleration observed in May and June, confirmed in July, enables better utilization of production capacity and will lead to a significant improvement in profitability in the second half of the year. Highlights – Net sales up +8.5% at constant exchange rates, despite the geopolitical challenges in the Middle East. An increase of +2.0% at current rates, impacted by negative currency effects of almost CHF -200 million. In the second quarter, the sales were up by +9.4% at constant exchange rates. – Very important global market shares gains (vs watch exports according to the Federation of the Swiss Watch Industry after six months: -0.7%) – Operating profit of CHF 52 million (operating margin of 1.7%), of course burdened by negative currency effects and the results from the Production segment, still due to the deliberate decision to maintain the production capacities and jobs, without resorting to compensation for reduced working hours. – Net income of CHF 16 million. Net margin of 0.5%. – Operating cash flow of CHF 304 million, up +68.9%, supported by rigorous working capital manage- ment. – Net liquidity 1) of CHF 1 125 million. – Equity of CHF 11.5 billion with an exceptional equity ratio of 85.3% – Strong acceleration in May and June with sales up +13.1% at constant exchange rates and an operat- ing margin of 8.6%, pointing to continued growth and improved profitability in the second half of the year. 1) Cash and cash equivalents as well as financial assets, securities and derivative financial instruments, minus current financial debts and derivative financial liabilities. Biel / Bienne, 21 July 2026
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Press release 21 July 2026 HALF-YEAR REPORT 2 Group Key Figures Change in % 1st half 1st half at constant currenc y Total (CHF million) 2026 2025 rates effect Net sales 3 121 3 059 8.5% –6.5% 2.0% Operating result 52 68 – in % of net sales 1.7% 2.2% Net result 16 17 – in % of net sales 0.5% 0.6% Investments in non-current assets 170 229 Equity, 30 June 11 496 11 681 Market capitalization, 30 June 10 307 6 855 Basic earnings per share in CHF – Registered shares 0.04 0.01 – Bearer shares 0.18 0.06 Unaudited figures
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Press release 21 July 2026 HALF-YEAR REPORT 3 Highlights of the first half 2026 Watches & Jewelry The Watches & Jewelry segment (excluding Production) performed stro ngly, with sales up +9.5% at constant exchange rates and an operating margin of 9.0%. In May and June, the operating margin was 15.0%. Regions Sales growth at constant exchange rates was realized across every continent. The United States recorded a growth of +27%. A pos itive trend is reported in most European market s, such as in Spain (+28%) an d in Italy (+12%). Sales in Asia and Oceania also increas ed, notably in Japan (+20%), South Korea (+12%), and Australia (+5%). A very strong growth was achieved in high-potential markets such as India (+38%), Mexico (+26%) and Sa udi Arabia (+41%). In China (inc luding Hong Kong SAR and Maca u SAR), Retail business continue s progression with an increase in sales of +9% with a stable number of points of sale. The third party retailer’s replenishment orders on the other hand remained modest. Furthermore, the chronical instability in the Middle Ea st impacted negatively the Group’s more than 200 point of sales in the region. Distribution channels With a comparable number of stores and a +18% growth at constant exchange rates, Swatch Group recorded important productivity gains in its own boutiques. Almost half of the segment Watches & Jewelry sales are now made through this channel. Online sales continued to grow by +30% at constant exchange rates. Brands Breguet had an excellent half year in a challenging environment for luxury brands, capitalizing on the bold innovations launched during its 250 th anniversary. This momentum was further strengthened in the first half of 2026. Harry Winston achieved outstanding sales in all regions, with a remarkable increase of nearly +20% at constant exchange rates i n China (including Hong Kong SAR and Macau SAR). Omega recorded a strong growth of +20% at constant rates in th e Retail business which weight no w 42% of the total turnover, mai nly thanks to its marketing investment notably as Official Timekeeper of the Olympic Winter Games in Milan and Cortina. With two digit turnover increases, Longines, Tissot and Hamilton experienced impressive growth, reflecting the robust performan ce from entry-level and mid-range brands which have won significant market shares. These segments provide excellent visibility for Swiss watches among a growing middle class in many countries and which may convert into future customers. Swatch has once again shaken up the world of watchmaking. The innovative Audemars Piguet X Swatch collaboration has been a resounding global success since its launch on 16 May. From day one, demand for Royal Pop far exceeded supply and this frenzy wi ll continue for months to come. Th e campaign Royal Pop has generated more than 25 billion views on social media. Royal Pop also boosted sales of the MoonSwatch and Scuba Fi fty Fathoms, Swatch’s watchmaking collaborations with Omega and Blancpain. Swatch enjoys since the launch of Royal Pop a huge flow of new consumers around the world, sometimes very young and who take interest for the first time in a mechanical watchmaking product. This product, which aims to change the customers’ habit of wearing watches only at their wrist, gives the opportunity to the entire Swiss Made watch industry to create a new market.
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Press release 21 July 2026 HALF-YEAR REPORT 4 Production The increase in volumes sold, particularly for entry-level and mid-range brands, gradually generated additional orders for the pro- duction companies, resulting in an improvement in operating profit. Electronic Systems The Electronic Systems segment, and in particular EM Microelectronic-Marin, saw a strong demand, notably for the integrated circuits, but suffered from the decrease of the USD and the increase in raw material prices. The operational situation of this Segment sh ould improve during the second half of the year with the invoicing in CHF for most of the contracts instead of the USD. Personnel The Group’s workforce shrank by 1.5% in the first half of 2026 du e to natural fluctuations and stood at 31 331 employees at the end of June. Outlook for the second half of 2026 The strong sales acceleration in May and June, which is confirme d during the first weeks of July, augurs an important sales gro wth in the second half of 2026. Thanks to its verticalized production capabilities and to the deliberate ly maintaining of jobs in this area, the Group can rapidly react to this situation with the final customers, and this in all price segments.
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Press release 21 July 2026 HALF-YEAR FINANCIAL STATEMENTS 5 Consolidated Income Statement 1st half 2026 1st half 2025 CHF million % CHF million % Net sales 3 121 100.0 3 059 100.0 Other operating income 90 2.9 68 2.2 Changes in inventories –29 –0.9 43 1.4 Material purchases –538 –17.2 –549 –17.9 Personnel expense –1 207 –38.7 –1 227 –40.1 Depreciation and impairment on property, plant and equipment –182 –5.8 –186 –6.1 Amortization and impairment on intangible assets –22 –0.7 –22 –0.7 Other operating expenses –1 181 –37.9 –1 118 –36.6 Operating result 52 1.7 68 2.2 Other financial income and expense –4 –0.1 –8 –0.2 Interest expense –2 –0.1 –1 –0.0 Share of result from associates and joint ventures 5 0.2 40 . 1 Ordinary result 51 1.7 63 2.1 Non-operating result 1 0.0 90 . 3 Result before income taxes 52 1.7 72 2.4 Income taxes –36 –1.2 –55 –1.8 Net result 16 0.5 17 0.6 Attributable to shareholders of The Swatch Group Ltd 9 3 Attributable to non-controlling interests 7 14 Earnings per share in CHF Registered shares Basic earnings per share 0.04 0.01 Diluted earnings per share 0.04 0.01 Bearer shares Basic earnings per share 0.18 0.06 Diluted earnings per share 0.18 0.06 Unaudited figures
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Press release 21 July 2026 HALF-YEAR FINANCIAL STATEMENTS 6 Consolidated Balance Sheet 30.06.2026 31.12.2025 Assets CHF million % CHF million % Current assets Cash and cash equivalents 1 132 8.4 1 010 7.5 Financial assets, securities and derivative financial instruments 227 1.7 221 1.7 Trade receivables 618 4.6 594 4.4 Other current assets 184 1.4 182 1.4 Inventories 7 303 54.1 7 295 54.5 Prepayments and accrued income 272 2.0 295 2.2 Total current assets 9 736 72.2 9 597 71.7 Non-current assets Property, plant and equipment 3 088 22.9 3 121 23.4 Intangible assets 133 1.0 143 1.1 Investments in associates and joint ventures 36 0.3 30 0.2 Other non-current assets 80 0.6 83 0.6 Deferred tax assets 407 3.0 402 3.0 Total non-current assets 3 744 27.8 3 779 28.3 Total assets 13 480 100.0 13 376 100.0 Unaudited figures
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Press release 21 July 2026 HALF-YEAR FINANCIAL STATEMENTS 7 Consolidated Balance Sheet 30.06.2026 31.12.2025 Equity and liabilities CHF million % CHF million % Current liabilities Financial debts and derivative financial instruments 234 1.8 36 0.3 Trade payables 255 1.9 245 1.8 Other liabilities 193 1.4 191 1.4 Provisions 84 0.6 90 0.7 Accrued expenses 498 3.7 421 3.2 Total current liabilities 1 264 9.4 983 7.4 Non-current liabilities Financial debts 2 0.0 20 . 0 Deferred tax liabilities 479 3.5 505 3.8 Retirement benefit obligations 43 0.3 42 0.3 Provisions 88 0.7 80 0.6 Accrued expenses 108 0.8 110 0.8 Total non-current liabilities 720 5.3 739 5.5 Total liabilities 1 984 14.7 1 722 12.9 Equity Share capital 118 118 Capital reserves –995 –994 Treasury shares –76 –81 Goodwill recognized –1 416 –1 416 Translation differences –1 054 –1 109 Retained earnings 14 818 15 043 Equity of The Swatch Group Ltd shareholders 11 395 84.6 11 561 86.4 Non-controlling interests 101 0.7 93 0.7 Total equity 11 496 85.3 11 654 87.1 Total equity and liabilities 13 480 100.0 13 376 100.0 Unaudited figures
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Press release 21 July 2026 HALF-YEAR FINANCIAL STATEMENTS 8 Consolidated Statement of Cash Flows (CHF million) 1st half 2026 1st half 2025 Operating activities Net result 16 17 Share of result from associated companies and joint ventures –5 –4 Income taxes 36 55 Depreciation on non-current assets 204 208 Impairment 0 0 Changes in provisions and retirement benefit obligations 1 –1 Gains/losses on sale of non-current assets 0 –16 Fair value gains/losses on marketable securities –1 –20 Expenses for employee stock option plan 4 3 Other non-cash items –3 59 Changes in net working capital: – Trade receivables –21 –22 – Inventories 33 –39 – Other current assets, prepayments and accrued income 29 –11 – Trade payables 18 –12 – Other liabilities and accrued expenses 47 35 Dividends received from associated companies and joint ventures 0 1 Income taxes paid –54 –73 Cash flow from operating activities 304 180 Investing activities Investments in property, plant and equipment –151 –199 Proceeds from sale of property, plant and equipment 0 13 Government grants related to assets 0 0 Investments in intangible assets –13 –23 Proceeds from sale of intangible assets 9 1 Investments in other non-current assets –6 –7 Proceeds from other non-current assets 7 5 Investments in current financial assets and securities –79 –107 Proceeds from current financial assets and securities 74 167 Cash flow from investing activities –159 –150 Financing activities Dividends paid to shareholders –234 –234 Dividends paid to non-controlling interests –1 –21 Purchase of treasury shares 0 0 Sale of treasury shares 0 29 Change in non-current financial debts 0 0 Change in current financial debts 199 169 Cash flow from financing activities –36 –57 Net impact of foreign exchange rate differences on cash 14 –52 Change in cash and cash equivalents (net cash) 123 –79 Change in cash and cash equivalents (net cash) – Balance at beginning of year 1 000 1 097 – Balance at 30 June 1 123 123 1 018 –79 Unaudited figures
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Press release 21 July 2026 HALF-YEAR FINANCIAL STATEMENTS 9 Consolidated Statement of Changes in Equity Attributable to The Swatch Group Ltd shareholders (CHF million) Share capital Capital reserves Treasury shares Goodwill recognized Translation differences Retained earnings Total Non-controlling interests Total equity Balance at 31 December 2024 118 –978 –132 –1 416 –754 15 274 12 112 105 12 217 Net result 3 3 14 17 Currency translation of foreign entities –320 –320 –11 –331 Change in goodwill 0 0 0 Dividends paid –234 –234 –21 –255 Employee stock option plan 0 4 4 4 Sale of treasury shares –13 42 29 29 Balance at 30 June 2025 118 –991 –86 –1 416 –1 074 15 043 11 594 87 11 681 Net result 0 0 8 8 Currency translation of foreign entities –35 –35 –1 –36 Change in goodwill 0 0 0 Dividends paid 0 0 –1 –1 Employee stock option plan –3 5 2 2 Balance at 31 December 2025 118 –994 –81 –1 416 –1 109 15 043 11 561 93 11 654 Net result 9 9 7 16 Currency translation of foreign entities 55 55 2 57 Change in goodwill 0 0 Dividends paid –234 –234 –1 –235 Employee stock option plan –1 5 4 4 Balance at 30 June 2026 118 –995 –76 –1 416 –1 054 14 818 11 395 101 11 496 Unaudited figures
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Press release 21 July 2026 NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS 10 1. Basis of preparation a. Basic accounting principles These interim financial statements cover th e unaudited half-year results for the six mo nths ended 30 June 2026. They have been prepared in accordance with Swiss GAAP FER (Accounting and Reporting Recommendations). The consolidated half-year closing 2026 was prepared in accordance with FER 31 “Complementary recommend ation for listed companies”. This half-year report does not include all the information and disclosures which are required in the annual report. It should therefore be viewed in connectio n with the annual report at 31 December 2025. b. Estimates and judgments In these interim financial statements, Management has reviewed and, if necessary, adapted accounting estimates and judgements. These are based on historical experience as well as other factor s such as expectations and assessments of future events, and ma inly impact the following areas: Inventories. Group products have an extremely long life. According to Group policies, inventories with sales risks or insufficient turnover were written down to their realizab le net market value. In the first half of 2026, this impairment amounted to CHF 23 million (previous year: CHF 19 million). Impairment. The recoverable value and the remaining useful life of non-current assets are verified regularly. If there are indications of a sustained impairment and the book value of an asset exceeds the recoverable amount, an impairment loss is recognized and booked. In the first half of 2026, no impairment was recognized (previous year: none). Provisions. Provisions are recognized and adjusted on an ongoing basis, according to Group policies. For warranty provisions, calcu- lation parameters, such as expected repair s and return volumes, are adjusted to current empirical values at least four times a year. Provisions for dismantling and restoration obligations are review ed and updated at least once a year. Restructuring provisions are recognized when a management decision raises valid expectations of third parties that a restru cturing will be carried out. Such pro- visions are subsequently adjusted on an ongoing basis to reflect current estimates. Income taxes. Current and deferred tax positions are reviewed on an on going basis and adjusted if necessary. These include the effects of changes in tax rates, the impact of ongoing tax audits and the assessment of carryforward tax losses. Deferred tax assets for carryforward tax losses are recognized to the extent that it is probable that future taxable profits will be available against which they can be utilized. The BEPS 2.0 project launched by the OECD regarding global minimum taxation of companies with an annual turnover of over EUR 750 million came into force in various countri es on 1 January 2024, includin g Switzerland. From 2025, Switzerland has introduced th e international top-up tax IIR (Income Inclus ion Rule) and can therefore levy additional taxes on profits of Swatch Group compani es abroad that are taxed locally at a lower rate than 15%. The Grou p has accrued the estimated additi onal top-up taxes of less tha n CHF 1 million in current taxes.
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Press release 21 July 2026 NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS 11 2. Segment information 1st half 2026 Watches & Jewelry Electronic Systems Corporate Elimination Total (CHF million) – Third parties 2 950 169 2 3 121 – Group 1 5 2 –8 0 Net sales 2 951 174 4 –8 3 121 Operating result 120 –5 –63 0 52 – in % of net sales 4.1% –2.9% 1.7% 1st half 2025 Watches & Jewelry Electronic Systems Corporate Elimination Total (CHF million) – Third parties 2 886 171 2 3 059 – Group 1 7 2 –10 0 Net sales 2 887 178 4 –10 3 059 Operating result 127 3 –62 0 68 – in % of net sales 4.4% 1.7% 2.2% 3. Group structure 2026 Number of companies at 1 January 144 Foundations 1 Group internal mergers –1 Liquidations 0 Number of companies at 30 June 144 of which associates 4 of which joint ventures 2 4. Key exchange rates Average rates Prevailing rates Average rates Prevailing rates Prevailing rates Currency Unit 01.01.-30.06.2026 30.06.2026 01.01.-30.06.2025 31.12.2025 30.06.2025 CNY 1 0.1153 0.1194 0.1186 0.1136 0.1116 EUR 1 0.9197 0.9230 0.9430 0.9316 0.9382 HKD 1 0.1009 0.1033 0.1101 0.1020 0.1018 JPY 100 0.4997 0.4990 0.5823 0.5070 0.5550 USD 1 0.7898 0.8100 0.8587 0.7942 0.7995 5. Treasury shares In the first half of 2026, there were no purchases or sales of treasury shares. In the first six months of the previous year, Swatch Group sold 192 706 bearer shares with a market value of CHF 29 millio n. In addition, 1 963 bearer shares with a value of less than CHF 1 million were delivered, in connection with the purchase in 2024 of minority interests in Belenos Clean Power Holding Ltd. As in the previous year, registered shares were sold for less than CHF 1 million as part of the employee stock option plan.
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Press release 21 July 2026 NOTES TO THE HALF-YEAR FINANCIAL STATEMENTS 12 6. Dividend The Company pays one dividend per fiscal year. For fiscal year 2025, the dividend ag reed at the Annual General Meeting on 12 Ma y 2026, with a value date of 19 May 2026, was distributed as follows: Dividend per share Total dividend CHF CHF million Registered shares 0.90 105 Bearer shares 4.50 130 Total dividend 235 Dividend not paid out on treasury shares –1 Total dividend paid 234 7. Significant events and business transactions During the period under review, no material events or business transactions occurred that might have an impact on the critical estimates, appraisals and assumptions to be found in the consolidated financia l statements as at 31 December 2025. Also, there were no further material events or business transactions that might impact upon other positions in the consolidated financial statem ents (such as, for example, changes to contingent liabilities and re ceivables or business transactions involving associated enterpri ses and persons). 8. Events after the closing date At the publish date of this press release, the Company is not aware of any significant new event that would affect the half-year financial statements at 30 June 2026. Original: French Translations: German, English and Italian CONTACTS Investors Thierry Kenel, Chief Financial Officer Phone: +41 32 343 68 11 The Swatch Group Ltd, Biel/Bienne (Switzerland) E-mail: www.swatchgroup.com/contactus Media Bastien Buss, Corporate Communications Phone: +41 32 343 68 11 The Swatch Group Ltd, Biel/Bienne (Switzerland) E-mail: www.swatchgroup.com/contactus