Swatch Group Holds Gold Valued at $3.66 Billion
Swatch Group has garnered attention due to an activist investor's call for greater oversight and control over the company, particularly regarding its performance in the luxury watch market. Despite facing criticism, the group reported improving sales figures for the second half of 2025, with a notable growth trend in the fourth quarter and early indicators for 2026. The company's chief executive emphasized their commitment to maintaining workforce flexibility and investing in advanced manufacturing systems, despite a decline in operating profit. In addition to its operational strategies, Swatch Group revealed it holds 21.8 tons of gold, valued at approximately $3.66 billion, which constitutes nearly one-third of its market value. Although the group boasts prestigious watch brands, it plans to reduce the use of gold in its products, focusing instead on higher volume, less expensive brands. Positive growth has been observed in brands like Tissot and Hamilton, particularly in the Chinese market, indicating a favorable sales outlook moving forward.
