As first-half earnings exceeded pre-pandemic levels for the first time, Hayek said in an interview that demand for lower-priced watches in Asia and the US remains strong. He also pointed out that China has still not made a full recovery.

Swiss watch exports have continued to increase in 2023 after reaching a record of more than 24 billion francs (around US$28 billion) last year. The reports assuaged concerns that the demand for luxury goods in the US might be waning. Watch exports to that market dipped in April.

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“What is really impressive is the [strength of the] US as well as Europe across all price segments,” Hayek said.

Average sales per Swatch store rose 30 per cent worldwide, boosting the revenue that the group gets from its retail network to 40 per cent of its total.

“Here you see the strength of consumption, even in the US,” the CEO said.

Operating profit advanced 36 per cent to 686 million francs in the first half, said the maker of Omega and Longines watches. Analysts had expected 604 million francs.

Revenue reached 4 billion francs, topping the previous first half record hit in 2018. Sales in Hong Kong tripled, while mainland China grew by double digits.

The company said growth was strongest in the lowest price segment of watches and jewellery. Demand for the company’s popular Omega MoonSwatch collaboration, priced at around US$260, has accelerated.

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Tourist destinations such as Thailand and Macau benefited from a recovery in travel, Swatch Group said. Sales in Switzerland gained 50 per cent, followed by strong growth in markets such as Italy, Spain and France.

A weak US dollar and euro against the franc shaved 242 million francs from first-half revenue.

According to the company’s half-year report sees “excellent” growth opportunities for the second half of 2023. “The only cloud on the horizon remains the unfavourable currency environment,” it says.

Watches of Switzerland reported sales of £1.54 billion (US$2 billion) for the year through April, matching analysts’ consensus estimates. The company reiterated its full-year forecast for 2024.

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Wait-lists for the most in-demand timepieces are increasing, as are average selling prices, CEO Brian Duffy said in an interview. In January, Rolex raised its UK prices by an average of around 2.5 per cent across its range, though certain models saw steeper rises.

“Elevated conditions remain and we are adding more people to the waiting lists than we are managing to take off, despite us editing down some of the names,” Duffy said.