Swiss watch exports had their biggest monthly increase in more than four years as a revival in Chinese demand more than offset a continuing slump in the U.S.
Shipments rose 9 percent to 1.7 billion francs (USD1.8 billion) in May, the Federation of the Swiss Watch Industry said in a statement yesterday. Exports to China rallied 34 percent, the third month of growth exceeding 30 percent, and exports to Hong Kong increased 18 percent.
The gain adds to evidence that the worst may be behind an industry that has struggled with a slump in China and a drop in tourism to Europe. The rebound in Asia is outweighing weak demand in the U.S., where a 1.1 percent decline was the 15th drop in 21 months. Last month, Swatch Group AG Chief Executive Officer Nick Hayek and LVMH’s watch chief Jean-Claude Biver predicted global exports will rise this year.
“The May data should be taken positively near-term, but we question whether trends are sustainable in particular given they are mainly driven by the high-end segment,” wrote Thomas Chauvet, an analyst at Citigroup.Shares of Swatch, which makes Omega timepieces, and Richemont, the owner of the Cartier brand, both rose as much as 1.6 percent in Zurich. Bloomberg
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