Swatch CEO Warns Iran War Is Weighing on Watchmaker’s Sales

Swatch Group AG is bracing for economic upheaval to persist this year, with turmoil in the Middle East hitting the watchmaker just as it grapples with the impact of a strong Swiss franc and tariffs.

The company has more than 200 stores in the Middle East, which excluding Saudi Arabia accounted for 5% to 10% of sales last year, according to Chief Executive Officer Nick Hayek. While they remain open, the drop-off in tourism will affect a key trading period at the end of Ramadan this week.