The Swiss watch industry experienced a notable rebound in February 2026, with export values climbing 9.2% year-over-year. This recovery follows a sluggish start to the year in January, where exports had dipped by 3.6%. It was mainly the very strong growth in three of the main markets – the USA, Japan and France – that tipped the balance.

According to the Federation of the Swiss Watch Industry (FHS), total monthly sales reached CHF 2.2 billion (approximately USD 2.77 billion), a significant increase from the CHF 1.9 billion recorded in the previous month.

Key Market Performance

The recovery was primarily driven by explosive growth in three core Western and Asian markets, which offset continued fragility in Greater China.

The Top Performers

• USA (+26.8%): Maintaining its position as the world’s largest market for Swiss watches, the U.S. continues to exhibit “seesaw” behavior. This volatility is largely attributed to shifting trade policies and tariff uncertainties under the Trump administration.
• Japan (+23.7%): Demand surged in Japan, marking it as a critical pillar of the February recovery.
• France (+57.1%): While appearing as the strongest growth leader for the third consecutive month, the FHS notes this likely reflects France’s role as a logistics hub. Many watches are transshipped through France to other European destinations rather than being sold to local French consumers.

The Struggling Hubs

In contrast to the Western rebound, the Asian “Greater China” region remains under pressure:

• China (-11.0%): Following a brief 5.0% uptick in January, demand plummeted again in February.
• Hong Kong (-5.2%): Similarly, the recovery seen in January (+3.6%) proved short-lived. The FHS characterized the demand in these regions as “fragile.”

Analysis of the Recovery

1. The “Base Effect”

A portion of the 9.2% growth is attributed to a positive base effect. February 2025 was an exceptionally weak month for the industry, with exports down 8.2% at that time. Consequently, the year-on-year comparison for 2026 appears more favorable because the starting point (February 2025) was so low.

2. Tariff Volatility in the U.S.

The U.S. market has become increasingly unpredictable. Watch brands and retailers have been oscillating between building up stocks to beat potential tariff hikes and pulling back during periods of trade policy shifts. This has created a “seesaw” effect in monthly export data.

3. Material and Price Segment Trends

Growth was not uniform across all categories. High-end timepieces continue to lead the charge:

• Precious Metal & Bimetallic Watches: These segments saw the strongest value increases, with bimetallic watches (gold/steel) surging by 38.4%.
• Price Tiers: Growth was most pronounced in watches with an export price between CHF 500 and CHF 3,000.