Fashion
Swiss watch exports drop sharply amid weak China demand and US tariffs
By
Bloomberg
Published
September 18, 2025
Swiss watch exports tumbled in August as Chinese demand remained weak and stiff US tariffs went into effect.
Exports fell about 17% from a year earlier, the Federation of the Swiss Watch Industry said in a statement Thursday. All main markets saw double-digit declines, with China down 36% and the US — the watch industry’s largest market — falling 24%.
To an extent, the plunge reflected an expected rebalancing following the high level of exports seen in April and July, ahead of anticipated tariffs, according to the statement.
Still, the figures highlight the more challenging conditions for Swiss-based watchmakers, including those controlled by Richemont, Swatch Group AG, and LVMH, as well as independents such as Audemars Piguet, Patek Philippe, and Rolex SA. Swatch shares fell as much as 2.1% and Richemont dipped 0.7% in early trading.
“The broad-based downturn underscores the formidable headwinds the Swiss watch industry continues to face,” Vontobel analyst Jean-Philippe Bertschy said in a note. “Recent reports from several watch brands suggested pockets of resilient US demand and a tentative stabilization in China. Today’s data, however, largely negates those signals,” he said.
The 39% levy the US applied on Switzerland — higher than the European Union and other developed economies — went into effect on Aug. 7 and has shaken the watchmaking industry. Many producers had rushed to build up inventory in the US to avoid tariffs.
One opted for a creative way to nudge the Swiss government to reach an agreement with the US. Swatch last week unveiled a special tariff edition priced at 139 Swiss francs ($176) and sold only in Switzerland. On the dial, the numbers three and nine are reversed — a nod to the 39% duty. The model will be pulled from stores once a new deal is made, according to a spokesperson.
Last Friday, U.S. Commerce Secretary Howard Lutnick struck a more positive tone and predicted that the U.S. would eventually reach a trade deal with Switzerland. The latest talks were described as “constructive.”
By
Reuters
Published
September 18, 2025
U.S. President Donald Trump’s trade war is helping push U.S. clothing and footwear acquisitions to all-time highs this year, with some companies merging to help offset tariff costs while others go private to weather the next 3-1/2 years of his presidency outside the public market, dealmakers say.
Popular sneaker company Skechers announced a $9.42 billion deal in early May to go private, days after it withdrew its annual earnings forecasts and sent a letter — along with 75 other footwear companies — to Trump, stating that the tariffs were an “existential threat” to the industry.
Sneaker seller Foot Locker, which also signed the letter to Trump, in May accelerated its $2.4 billion sale to Dick’s Sporting Goods. While both deals were in the works for months, bankers and analysts said Trump’s tariffs are creating both chaos and opportunity for retailers and brands to explore tie-ups. This has driven dealmaking in the U.S. footwear and apparel sectors to roughly $21 billion in announced deals year-to-date.
With more than three months left in the year, that figure is already a record, according to LSEG data dating back to the 1970s — particularly surprising for an industry where valuations are not nearly as lofty as those in tech or financial services. The previous record for U.S. apparel and footwear M&A was last year’s $16.1 billion, and before that, 2021’s $15.6 billion, according to LSEG.
“Scale is more important in a tariff-rich environment because you can negotiate better terms across a larger base with many of your counterparties,” said Carmen Molinos, Morgan Stanley’s global co-head of consumer retail investment banking.
Morgan Stanley advised Canadian apparel maker Gildan Activewear on its acquisition last month of U.S. underwear maker Hanesbrands for $2.2 billion.
Both companies produce more in Central America and the Caribbean than in Asia, and primarily use U.S.-grown cotton, which provides them with some protection from tariffs. The combination insulates them more from fluctuating geopolitics, and Gildan was one company looking to get bigger amid the chaos.
“We think that we’re really well aligned to take advantage, actually, of this near-shoring opportunity,” Gildan’s CEO and co-founder Glenn Chamandy said on an August investor call about the deal.
Tariffs were a shock to the system that showed retailers just how quickly their businesses could get disrupted, highlighting the importance of scale, several bankers said.
“In moments of turmoil and change, those who are in a position of strength are looking to build up on those strengths, and if they see the right strategic fit, they’re taking advantage (and buying),” said JPMorgan’s Jonathan Dunlop, co-head of North America consumer and retail investment banking.
This year, JPMorgan advised 3G Capital on Skechers and brand management firm Authentic Brands Group’s $1.4 billion deal last month for Guess. Authentic also picked up Dockers from Levi Strauss, while another brand management firm, Bluestar Alliance, announced a deal to buy Dickies from VF Corp this week.
Brand management firms typically buy a brand’s IP and then license it to operating partners that handle manufacturing, design, and sales.
“The brand management companies have been some of the most prolific acquirers of both middle-market and a handful of multi-billion-dollar retail brands,” said David Shiffman, partner and head of consumer retail at Solomon Partners. The bank advised the special committee of Guess.
Navigating the uncertainty
Going private, as in Skechers’ case, is becoming an increasingly attractive option to navigate the uncertainty without the pressure of public quarterly reporting — especially if companies feel the public market is not valuing them appropriately.
Foot Locker, meanwhile, had been in discussions about a sale since Dick’s Executive Chairman Edward Stack first reached out to rival CEO Mary Dillon in January 2024.
Trump’s April 2 self-styled “Liberation Day,” when he announced sweeping new global tariffs, helped seal the deal earlier than expected, according to an SEC filing. Foot Locker said tariffs were causing the company’s stock to drop and that it was headed for a weaker-than-expected first-quarter earnings report — a development executives feared would further depress shares.
The board decided on May 10 to try to bring “negotiations to a close quickly,” it said in a securities filing. The next four days were a flurry of paperwork and legal meetings before the companies announced their deal — with two weeks to spare before reporting earnings.
Bankers advise watching for more tie-ups later this year as stronger retailers seek deals and struggling companies look for partners.
Private equity firm Bain Capital is trying to offload its stake in Canada Goose, and Lands’ End has received offers from brand management firms.
© Thomson Reuters 2025 All rights reserved.
“For 40 years, I.N.C. has been a cornerstone of Macy’s private brand portfolio, delivering the latest fashion designed to inspire and empower women,” said Emily Erusha-Hilleque, SVP of Private Brand, Design, and Trend at Macy’s. “To celebrate this milestone, we partnered with Christian, a true visionary whose designs celebrate individuality, inclusivity and bold expression. As we honor I.N.C.’s heritage, we are excited for our customers to experience this collection that celebrates fabulous style, trend and embraces the next chapter for the brand.”
Macy’s is marking I.N.C.’s 40th anniversary with a fall collection curated by CFDA award-winning designer Christian Siriano.
The collection blends heritage and modern style, featuring exclusive artwork, limited-edition T-shirts, customised blazers, and a couture dress for NYFW.
A campaign with top models and Herald Square displays highlight the launch, with proceeds from auctions benefitting charity.
Siriano has established himself as a tour de force in the fashion world since launching his eponymous collection in 2008, following his studies in London under Vivienne Westwood and Alexander McQueen. Siriano’s designs have been worn by today’s biggest names including Dr. Jill Biden, Michelle Obama, Kamala Harris, Angelina Jolie, Oprah, Zendaya, Ariana Grande, Julianne Moore, Lady Gaga, Tiffany Haddish, Billy Porter, Cardi B, Whoopi Goldberg, Julia Roberts, Jennifer Coolidge and more.
“Collaborating with Macy’s to celebrate 40 years of I.N.C. has been such a meaningful project,” said Siriano. “I.N.C. has played an iconic role in shaping fashion, and this collection is meant to honor that incredible legacy while also reimagining what modern, confident style can look like today. For me, it’s about curating pieces that empower individuality and bring joy to getting dressed.”
Capturing the spirit of this collaboration, Siriano designed an exclusive original artwork to be featured on limited-edition t-shirts, which are now available for purchase online and in select Macy’s stores. In celebration of 40 years of I.N.C., Siriano took 40 signature black blazers from the new collection, transforming each with his distinctive touch to create one-of-a-kind pieces that embody I.N.C.’s statement-making style. In addition, he created a unique couture dress which will be unveiled during New York Fashion Week (NYFW). Both the blazers and the couture dress will be auctioned in September with proceeds going to charity.
Siriano also stars in I.N.C.’s fall campaign alongside a dynamic group of models, including Candice Huffine, Daiane Sodré and Martha Hunt, who were selected for their individuality, presence and connection to the brand. Photographed by Alexi Lubomirski, the campaign will come to life across digital platforms, social media and select stores nationwide. Macy’s iconic Herald Square windows will also feature the collection and the one-of-a-kind blazers. Siriano will present his spring 2026 collection during NYFW on September 12. The show is sponsored by Macy’s and will be staged at the Herald Square flagship in New York City.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
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