The images for the Swatch Essentials collection were widely condemned online in China, where many comments said they appeared to mimic racist taunts about Asian eyes.
Shares in the company slipped by as much as 2.7% in early trading on Monday, August 18, before paring losses somewhat.
In an apology posted in both Chinese and English on its official account on the Weibo social media platform on Saturday, Swatch said that it has “taken note of the recent concerns” and removed all related materials worldwide.
“We sincerely apologise for any distress or misunderstanding this may have caused,” the statement said. It also posted the same apology on Instagram.
Swatch Group did not immediately respond to a Reuters request for further comment. The criticism over the advert is the latest setback for a firm whose shares have fallen by more than half since early 2023 and now faces a 39% tariff on its exports to the United States.
Swatch, which also makes Omega, Longines and Tissot watches, is heavily exposed to China for revenue, with around 27% of the group’s sales last year coming from the China, Hong Kong and Macau region.
Revenue for the watchmaker slumped 14.6% to 6.74 billion Swiss francs ($8.4 billion) in 2024, hit by a downturn in demand in China, where Swatch said it was seeing “persistently difficult market conditions and weak demand for consumer goods overall”.
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