Richemont, Swatch Rally on Optimism Worst Is Over in Watches

  • Shares of both Swiss watchmakers trading near one-year highs
  • Watch revenue may stop declining as retailers order more
Photographer: Jasper Juinen/Bloomberg

Richemont and Swatch Group AG shares surged on optimism the Swiss watch industry may be bottoming out.

Richemont advanced as much as 9.4 percent to a one-year high after a gain in sales of timepieces at the Cartier maker’s own stores signaled that wholesale orders may stop declining. The Geneva-based luxury-goods maker also said sales to retailers are dropping less as demand in China has improved. Swatch rose as much as 8.5 percent to the highest since March.