Richemont, Swatch drop pre-market as Middle East escalation clouds luxury outlook

Swatch groupAG

02/03/2026 07:56

** Shares of Swiss jewellery company Richemont CFR.S and Swiss watchmaker Swatch UHR.S drop 3.3% in Julius Baer pre-market trade after U.S. and Israeli strikes on Iran

** A sharp military escalation in the Middle East creates a highly uncertain environment for global luxury sector, Vontobel says

** The key issue at this point is that neither the length nor the scope of the conflict can be predicted, making any attempt to quantify its impact highly uncertain, Vontobel notes

** Richemont derives 6% of its sales from the United Arab Emirates and a further 9% from the broader Middle East and Africa region, while Swatch Group's exposure is somewhat lower, according to broker's estimates

 (Reporting by Amir Orusov)

 ((Amir.orusov@thomsonreuters.com))