Swatch Group AG failed to hit the sales record predicted by its chief executive officer as the return of customers in China for brands including Omega and Longines disappointed and a strong Swiss franc weighed down results.

The Biel, Switzerland-based company reported revenue of 7.9 billion Swiss francs ($9.1 billion) for 2023, missing an analyst consensus estimate of 8 billion francs.

CEO Nick Hayek said a year ago that 2023 sales could reach an all-time high of as much as 9 billion francs as Chinese shoppers came back to stores after the end of pandemic lockdowns. China is traditionally the company’s biggest market, accounting for as much as 40% of sales.

The company said the surging value of the Swiss franc against other currencies dented sales by 554 million francs even as it aggressively hiked watch prices.

“The rapid erosion of major currencies against the Swiss franc could not be offset by continuous price adjustments,” the company said in a statement.

While Swiss watch exports are expected to hit a record this year, rival watchmakers including Richemont have reported slowing demand in recent months following a Covid-era boom.

After the success of the collaboration between its entry level Swatch brand and high-end Omega marque sold more than 1 million MoonSwatches in 2022, the company tried again with a Swatch version of the Blancpain Fifty Fathoms in September.

The collaboration provided a boost to traffic in stores and demand for some Blancpain models, the company said. It did not disclose specific sales figures for the brand.

Swatch said net income rose 8.1% to 890 million Swiss francs. Analysts expected 979 million francs, according to consensus estimates compiled by Bloomberg.

Swatch said its jewelry brand Harry Winston will hit more than 1 billion francs in sales this year. It also expects demand in China to improve.

“Exchange rate movements will continue to impact the group’s results due to its strong industrial base in Switzerland,” the company said.