Swatch Shares Decline as Watchmaker Issues Apology for Racist Ad
Swatch Shares Keep Sliding After a Late‑July Upswing
Since hitting a sharp high in late July, Swatch’s stock has been steadily declining. The recent advertising blunder is unlikely to accelerate any recovery.
Key Takeaways
- Peak in late July marked the last major rally.
- Share price now on a consistent downward trend.
- Recent ad mistake will not boost investor confidence.
Swatch Responds to Controversial Ad Campaign
Immediate Action Taken
- Swift removal of the offending ad from all global platforms
- Official statement issued on Instagram and Weibo, covering multiple languages
What Triggered the Apology
A promotional image for the Swatch Essentials collection featured an Asian male model using a gesture that has been widely identified as offensive. The action—pulling the corners of his eyelids upwards and backwards—was flagged by media outlets as a cultural misstep and a form of racial insensitivity.
Swatch’s Response
In a heartfelt apology, Swatch expressed sincere regret “for any distress or misunderstanding this may have caused”. The company pledged to handle the situation with “the utmost importance” and to prevent future incidents.
Next Steps
- Comprehensive review of marketing practices across all regions
- Ongoing training for staff on cultural awareness
- Implementation of a stricter vetting process for visual content
Swatch shares in decline
Swatch Shares Trade Between 138.20 CHF and 139.55 CHF on Monday
On Monday, Swatch’s stock oscillated within a daily range of 138.20 CHF (€146.74) to 139.55 CHF (€148.17). Over the past ten days, the share price has slipped six times, resulting in a cumulative decline of about 4.3 %.
Volume and Volatility Signals
- Volume Drop: Trading volume fell by roughly 22 000 shares, a divergence that may foreshadow increased short‑term volatility despite the upward price trend.
Sales Performance and Market Challenges
- Weak First‑Half Sales: Swatch reported sales figures below expectations for the first half of the year.
- China Demand Slowdown: The shortfall is largely attributed to sluggish demand in China, which remains a critical market for the company.
- Marketing Impact: The recent backlash over a controversial advertisement is unlikely to provide a boost to sales figures.
Key Takeaways
- Swatch’s share price shows a slightly bullish intraday trend but overall downward momentum.
- Reduced trading volume indicates potential for volatility in the near future.
- Continued pressure from weak demand in China poses a risk to the company’s outlook.
