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Investing.com -- Swatch Chief Executive Nick Hayek anticipates improvements in the Chinese market during the second half of 2025, though he is prepared to accept reduced profits after the Swiss watchmaker experienced a significant drop in first-half earnings.
"It will not be a revolution, it will not be massive, but it’s a trend in the right direction," Hayek said Thursday, referring to expected improvements in Chinese consumer demand.
The company, which owns brands including Omega and Tissot, has been facing weak demand in China for more than a year. The Chinese market represents 24% of Swatch’s group sales, and the company reported another sales decline in the first half of 2025.
Despite these challenges, Hayek stated the company would manage through the downturn without implementing job cuts in Switzerland.
"We can cope with it. We can also accept to have less profits," Hayek said. "But we stick with our people."
He added that during periods of reduced capacity, the company focuses on development: "We train them. We have our factories. We have our know-how. If there is a slowdown and the capacities cannot be filled, we start to develop new products."
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