"Today's SNB (Swiss National Bank) action is a tsunami; for the export industry and for tourism, and finally for the entire country," said Nick Hayek, the chief executive of Swiss watch firm Swatch.

It is currently up about 25% against the USD.

Share price of Richemont down 17%. Swatch group share price down 14%.

 

In general true unless it's a seller in Switzerland - like AQ quoting in francs!

 

Most larger multi-national companies generally hedge their risks, so fluctuations in the currency markets don't bother them much either way. Smaller Swiss independents might be affected more, but customers for that type of product usually are well hedged themselves.

Or at least well heeled.
gatorcpa

 

Buy Nomos or another non-Swiss brand!

 

Problem is it's a huge change in FX policy for the swiss - going from a rate pegged to the Euro to a free floating one so don't know if these companies bothered to hedge since the peg has been there for the past 3 years.

 

That 13% drop this morning made the graph nice viewing!

Money was made today.

 

One upside - cheaper for US buyers to purchase vintage omegas from European sellers and less competition also from Europe for Vintage omegas sold in the US.

 

Probably long term they will have to for the product they continue to buy from Omega in switzerland but this immediate bump is for more money since this is for stock they have on hand and purchased at the old exchange rate.