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Swatch shares drop as Swiss watchmaker forced to apologise for racist ad


By&nbspEuronews Business&nbspwith&nbspAP

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Swiss watchmaker Swatch apologised Monday for an ad campaign that upset consumers in China and elsewhere and said it had “immediately removed all related materials worldwide.”

In an image for the Swatch Essentials collection, an Asian male model is shown pulling the edges of his eyelids upward and backward with his fingers—a gesture seen as derogatory and racist, Swiss public broadcaster SRF reported.

Swatch wrote on Instagram that “we sincerely apologise for any distress or misunderstanding this may have caused.” It said it would “treat this matter with the utmost importance.”

SRF reported that the apology was also posted on the Chinese social network Weibo in Chinese and English.

Swatch shares in decline

The intraday trading range for Swatch on Monday was between 138.20 CHF (€146.74) and 139.55 CHF (€148.17), with the stock declining in 6 of the last 10 days, down by 4.3%.

Monday’s volume fell by around 22,000 shares, signalling a divergence with rising prices and potentially warning of near-term volatility.

Swatch’s sales in the first half of the year fell short of estimates, largely due to sluggish demand in its key market—China. This shortfall dragged its performance and reflects ongoing challenges in the region.

Sales will certainly not be boosted by the backlash over the racist commercial.



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