Overview

• The disputed Essentials campaign image showed a male Asian model pulling at his eyelids, which users said mimicked racist stereotypes.
• Swatch issued bilingual apologies on Weibo and Instagram and said it removed all related materials globally.
• Boycott calls spread on Chinese social media, and a Weibo influencer with more than one million followers demanded sanctions on the company.
• Shares fell as much as 4% on Monday before closing about 3.1% lower, and the company declined to comment beyond its statement.
• The flare-up follows a reported 11.2% first-half drop in net sales driven by weak demand in China and neighboring markets.