Shares of luxury goods groups Richemont and Swatch suffered from general sector weakness at the end of the week, following disappointing figures from international competitors. Around 14:00, Richemont shares fell by 4.9 percent to 163.95 francs, making Richemont the bottom performer in the SMI, which declined by 0.4 percent. Swatch bearer shares dropped by 3.6 percent to 172.15 francs. The previous day, Richemont had already fallen by 1.8 percent and Swatch by 2.5 percent, underperforming the broader market.
Trading desks pointed to general sector weakness, with shares of the Kering group dropping by 13 percent. An analyst stated that the Gucci owner is struggling with the restructuring of its business, noting that the flagship brand Gucci showed hardly any signs of business stabilization. While Gucci's third-quarter revenue fell by 6 percent currency-adjusted—exceeding market expectations for a decline—due to ongoing weak demand in China, other Kering brands such as Saint Laurent and Bottega Veneta grew. Group revenue thus declined by only 1 percent on a comparable basis.
Market participants noted that the key factor is how Gucci returns to success in China, while Kering must simultaneously reduce accumulated inventories and close stores. The weak sentiment in the Chinese luxury goods sector was already evident during the earnings presentation on Thursday by leather goods leader Hermès, whose stock traded down 3.0 percent.
The disappointing results from Kering and Hermès raised growing doubts on the stock market regarding the business performance of Richemont and the Swatch Group. Just over ten days prior, industry leader LVMH reported third-quarter organic growth of 1 percent, which also fell short of expectations; its shares traded down 1.0 percent. Furthermore, it was announced this week that Swiss watchmaker Zenith, part of French group LVMH based in Le Locle, is planning extensive job cuts.
Richemont's situation will become clear in mid-November when the Geneva-based group publishes its half-year results for 2026/27. In the past, the group benefited from strong demand for its jewelry business with flagship brands Cartier and Van Cleef & Arpels. Meanwhile, the Swatch Group, which has a strong focus on watches, will not present its next figures until the end of January, covering the 2026 financial year.
