Brexit Stockpiling Boosts Swiss Watch Growth

RAPAPORT... Swiss watch exports rose in February, as stockpiling in theUK prior to Brexit accounted for 80% of the industry's worldwide growth. Shipments rose 3.4% to CHF 1.8 billion ($1.8 billion) forthe month overall, following a two-month downturn. Supply to the UK surged 58%to CHF 126.5 million ($126.5 million), while those to China bounced back,rising 15% to CHF 151.1 million ($151.1 million). Exports to Hong Kong fell3.8% to CHF 245.6 million ($245.6 million), and orders to the US dropped 7% toCHF 174.4 million ($174.4 million). "Export growth in the watch industry gained momentum inFebruary, despite a base effect that remained very unfavorable," the Federationof the Swiss Watch Industry reported Tuesday. The UK boasted "extraordinarygrowth," it noted. Top-priced watches continued to show strong growth, thefederation said, noting it was a trend that has continued nearly uninterruptedfor the past two years. Shipments of watches priced above CHF 3,000 ($3,000)rose 8% by value, while exports of those worth CHF 500 ($500) to CHF 3,000 fell5%. Supply of products priced between CHF 200 ($200) to CHF 500 remained flat,while watches valued under CHF 200 plummeted 15%. Bi-metal and precious metal watches, especially those madeof platinum, helped boost results, the federation noted. Exports of watchesmade from gold and steel jumped 12% to CHF 311.2 million ($311.2 million).Supply of timepieces made of precious metal grew 4.3% to CHF 564.7 million($564.7 million), while shipments of steel watches inched up 0.5% to CHF 656.6million ($656.6 million). Image: Swiss watches in a London store window. (Shutterstock)