Franc Surge Spoils Luxury-Watch Party as Swiss Costs Mount

The Swiss National Bank spoiled the party for the country’s luxury watchmakers just as they were preparing for some of the most lavish bashes of the year next week at the annual Geneva watch show.

The decision to end the minimum exchange rate between the Swiss franc and the euro means luxury timepiece makers in the Alpine country face one of their most challenging years. Shares of Richemont, the parent company of watch brands including Vacheron Constantin and IWC, declined 16 percent yesterday in Zurich, the most in more than two decades, as the franc surged more than 15 percent against the euro.