Company Overview & Market Position - Swatch Group is a major force in watchmaking, valued at over $9 billion [1] - The company is the largest watch manufacturer by volume globally, and third by retail value behind Rolex and Richemont [4] - The group's portfolio includes brands ranging from inexpensive Swatch to high-end Breguet and Blancpain [5][6] Challenges & Financial Performance - Swatch Group's performance has been under pressure, leading to it becoming one of the most shorted stocks in Europe [2] - Profit was down almost 90% in the first half of 2025 [13] - A softened market in China, which accounted for 27% of the group's sales in 2024, has significantly impacted the company [14] - The US imposed a 39% tariff on imports from Switzerland, creating a major external headwind [3][16] Strategic & Governance Issues - The family and related parties control 44% of the voting rights, leading to a sometimes tempestuous relationship with shareholders [17] - The company is conservatively structured, and some investors are pushing for changes [19] - Swatch has been criticized for not engaging with investors in the same way as other groups [18] Product & Marketing - The MoonSwatch collaboration in 2022 was a major success, selling over 1 million units, significantly boosting the bottom line [21] - Swatch has been criticized for falling out of the conversation in terms of exciting new products and relevant marketing [22]