Another year of strong progress with double digit like-for-like growth, confirming the new strategic direction, and driven by increased brand desirability, exciting product collections, and a joyful shopping experience.
Männedorf, Switzerland and Wattens, Austria – March 12, 2024.
The family-owned Swarovski Crystal Business announced today its results for the fiscal year ending December 31, 2023.
The company posted solid and broad-based growth of +4% to €1,832m vs. the previous year, building on robust +10% like-for-like* growth, well above market growth in a slowing luxury market, and a volatile geopolitical and macro-economic environment.
EBIT before restructuring costs returned to positive territory for the first time since 2019, despite significant adverse foreign exchange impact. The strong fourth quarter was key in lifting the overall performance in 2023, with a sales growth of +9%, and EBIT before restructuring costs reaching the highest level since Q3 2018.
These 2023 results reconfirm Swarovski’s strategic direction aimed at reaffirming its iconic heritage in today’s contemporary spirit, and the business model transformation underway.
“These strong results further reconfirm the pertinence of the LUXignite strategy and the lasting power of our iconic brand and unique savoir-faire. I am most grateful to SWAROVSKI employees and partners across the world for their passion and commitment, and the board and shareholders for their steadfast support," says CEO Alexis Nasard. "Our focus in 2024 will be on the disciplined execution of our strategy, with a continued focus on superlative creativity in our product collections and communication, and further investments in our retail network and major brand moments”.
Broad-based organic growth in 2023
- All business categories, with retail sales up +4%, and B2B crystals up +5%.
- All major product categories, led by jewellery which went up +6%.
- All top-10 markets achieved like-for-like growth, with sales in key cities up +13%.
- Omnichannel growth with off-line up +5% and on-line up+4%, with swarovski.com up +11%.
- A strong increase of +36% in store profitability.
Major profit and cash improvement
The company achieved a move to positive EBIT before restructuring costs despite a negative impact from adverse foreign exchange movement, concomitantly with a major improvement in net debt position. This improvement was enabled by increased cash flow generation in addition to growth and improved operating leverage.
Exciting collections, retail concepts and major brand moments
The brand’s jewellery and home collection, communication campaigns and the continued elevation of its retail experience under the leadership of Swarovski’s creative director Giovanna Engelbert, continued nurturing the brand’s equity and its positioning as a Pop Luxury icon.
Furthermore, 2023 marked a number of new chapters in the brand’s 128-year history, with dazzling new flagship stores in New York and Seoul, as well as the impactful collaboration with SKIMS and the launch of a new eyewear collection in collaboration with our license partner EssilorLuxottica, which further widened the reach of the brand. Additionally, the landmark exhibition Masters of Light – From Vienna to Shanghai, was a true celebration of the brand’s savoir-faire and rich heritage. On the product side, the iconic Millenia collection continued showing sustained growth, and the launch of the new Galaxy collection under Swarovski Created Diamonds, inspired by the birth of the cosmos, marked another step in our commitment to lab-grown diamonds.
As a result of the above, the brand experienced a strong increase in its desirability, and its appeal to Millennials and GenZ.
2024
The focus of the company in 2024 will be on sustaining and accelerating profitable growth as an integral part of the LUXignite transformation journey, whilst continuing elevating the brand, enhancing the shopping experience, and maintaining financial discipline.
About Swarovski
Masters of Light Since 1895
Swarovski creates beautiful products of impeccable quality and craftsmanship that bring joy and celebrate individuality.
Founded in 1895 in Austria, the company designs, manufactures, and sells the world's finest crystals, Swarovski Created Diamonds and zirconia, jewellery, and accessories, as well as home décor and crystals for Automotive. Swarovski Crystal Business has a global reach with approximately 6,600 points of sale, of which 2,300 are owned stores, in over 150 countries and employs 16,600 people. Together with its sister companies Swarovski Optik (optical devices) and Tyrolit (abrasives), Swarovski Crystal Business forms the Swarovski Group. A responsible relationship with people and the planet is part of Swarovski’s heritage. Today this legacy is rooted in sustainability measures across the value chain, with an emphasis on circular innovation, championing diversity, inclusion, and self-expression, and in the philanthropic work of the Swarovski Foundation, which supports charitable organisations bringing positive environmental and social impact.
NB: Figures are preliminary, unaudited, and subject to change. The consolidated annual financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS). All values are disclosed in Euros.
*growth is measured at constant currency, like-for-like growth is measured at constant currency for owned offline and online retail stores which have been operating for +12 consecutive months.
