Watch Exports Bounced Back in February Before War in Middle East

(Bloomberg) — Swiss watch exports returned to growth last month as US demand continued an uneven recovery from the fallout over trade tariffs.

Overall exports rose 9.2% in February from a year earlier, the Federation of the Swiss Watch Industry said Thursday, with watches priced over 500 Swiss francs ($630) leading the gains across all segments. Exports to the US, the industry’s largest market, were up 26.8% after a drop in January.

Still, the industry now faces disruption in the Middle East, which has been a rare bright spot for luxury companies amid weak demand in China and US President Donald Trump’s tariffs. Swiss watch exports to the United Arab Emirates rose 5.1% in February. Swatch Group AG Chief Executive Officer Nick Hayek warned Wednesday the drop-off in tourism would hit sales.

Elsewhere, exports to Japan rose 23.7% and those to France soared 57.1%, though the federation said that reflected shipments ultimately heading to other countries rather than French market strength. The US, meanwhile, continues to see-saw since the retroactive easing of tariffs from November.

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