Market Downturn Sees Swatch Group Axed from Swiss Leaders Index; Luxury Brands Face Sudden Headwinds

Despite owning a portfolio of premium brands like Omega, Longines, and Tissot, the horological heavyweight Swatch Group is facing a downturn by falling off the Swiss Leader Index (SLI) due to receding market capitalization and trading volumes. The secondary insurance group, Helvetia Baloise Holding, is positioned to replace Swatch in the benchmark index, effective from December 22, 2025.

Expectedly, inclusion into this important index relies heavily on market capitalization and share trading volumes. For Swatch, however, it’s been a rocky ride with both these parameters seeing a significant dip. Analysts present the slump in sales in the Chinese markets and competition from smartwatches as significant contributors to Swatch’s decline. This isn’t the company’s first brush with delisting either. In 2021, the Swatch Group was demoted from the Swiss Market Index.

The Swiss Leader Index is a comprehensive measure of the top Swiss companies. It compiles the 20 leading blue-chip companies from the Swiss Market Index along with the 10 largest mid-cap stocks from the Swiss Market Index Mid. This broad benchmark gives investors easy exposure to Swiss large- and mid-cap stocks. However, it appears that Swatch Group’s current trajectory has rendered it unfit for inclusion in this prestigious index.