Swatch\’s stock plummets after the watchmaker must apologize for a racist advertisement.
Swatch Shares Slide After July’s Sudden Surge
Market Snapshot
Following a pronounced uptick near the end of July, Swatch’s stock has steadily lost value. The latest blunder in their advertising campaign is not expected to turn this trend around.
- August Decline: Shares have been falling consistently since the July peak.
- July Surge: A sudden rise saw the stock hit a sharp high before retreating.
- Advertising Slip-up: The new ad misstep dampens investor confidence.
- Short‑Term View: The stock is unlikely to recover quickly.
Swatch Faces Backlash Over Displeasing Advertisement
On Monday, the Swiss watchmaker Swatch issued a formal apology after a promotional image sparked discontent among consumers in China and beyond. The campaign featured an Asian male model pulling the corners of his eyelids up and back with his fingers, a gesture that many interpreted as a derogatory, racist symbol.
Company Response
- Immediate Action: Swatch announced that all related materials had been removed from circulation worldwide.
- Apology Statement: The brand posted a heartfelt apology on Instagram: “We sincerely apologise for any distress or misunderstanding this may have caused.”
- Commitment to Address the Issue: The company stated it would “treat this matter with the utmost importance.”
- Multi‑Regional Outreach: The apology was also published on the Chinese social network Weibo in both Chinese and English to ensure broad communication.
Context and Reactions
The controversy was highlighted by Swiss public broadcaster SRF, which reported that the image was considered offensive and racially sensitive. The swift removal of the campaign and the comprehensive apology demonstrate Swatch’s effort to mend relations with affected communities.
Swatch shares in decline
Swatch Shares Slide Amid Lower Trading Volume
On Monday, Swatch’s stock price ranged from 138.20 CHF (€146.74) to 139.55 CHF (€148.17), following a trend of decline seen in 6 out of the past 10 days, falling by 4.3 %.
The trading volume dropped by roughly 22,000 shares, contradicting the upward price movement and hinting at possible short‑term volatility ahead.
Key Highlights
- Price Range: 138.20 CHF – 139.55 CHF
- Recent Downtrend: 6 of the last 10 days
- Closes 4.3 % lower
- Volume Decline: ~22,000 shares
Sales Performance Impact
Swatch’s first‑half sales missed analyst expectations, predominantly because demand in its flagship market, China, remained sluggish. This shortfall is shaping the company’s overall performance and underscoring ongoing challenges in the region.
Broader Context
The negative reception of a recent racist advertisement is unlikely to rescue the company’s sales figures.
