(corrects spelling of analyst in 6th paragraph to 'Cox' from 'Kox')
By Emma Thomasson
ZURICH, Dec 18 (Reuters) - Switzerland exported half a million fewer watches in November in the first monthly decline since 2005 for a key industry as the economic crisis crimped purchases of luxury accessories, notably in Asia and the United States.
Exports plummeted 15.3 percent to 1.52 billion Swiss francs ($1.35 billion) after a 0.1 percent rise in October, data from the Federation of the Swiss Watch Industry showed on Thursday.
Shares of watchmaker Richemont
"This decline clearly illustrates the curb on growth suffered by the industry as a result of the world economic climate," the Federation said in a statement, adding that November was usually the industry's best trading month.
Most markets registered double-digit declines, it said, with falls of 25 percent in the United States, 17 percent in Hong Kong, and 14 percent in Japan -- three of the top markets for Swiss watches -- while France and Germany continued to see increases.
Kepler Capital Markets analyst Jon Cox said the Hong Kong, Japan and U.S. figures were a lot worse than expected, particularly given the strengthening of the dollar and yen against the Swiss franc.
"Whispers that November data might not be as bad as expected were clearly wrong and we would expect pressure on watchmakers (and branded goods sector) as a result of the data," he said in a note.
UBS analysts cut their price target for Swatch to 300 francs from 400 francs before the data on Thursday, but reiterated their "buy" rating for both Swatch and Richemont.
"We believe European luxury goods stocks have hit the bottom," they wrote in a note.
"Long-term margin expectations in stock prices are too pessimistic. We expect valuations to underpin shares as newsflow becomes less negative in the first quarter of 2009," they said.
MID-LUXURY SEGMENT HARD HIT
The Swiss federation said 17.4 percent fewer watches were exported in November, a fall of half a million to 2.4 million.
It said all price segments saw declines, with exports of watches worth between 500 and 3,000 francs hardest hit, contracting 30 percent, while watches costing more than 3,000 francs only fell by 5.4 percent by value.
Analysts have predicted that 2009 would be even worse as the impact of the financial crisis spreads through the real economy.
But the chief executive of Swiss watchmaker TAG Heuer --
part of French luxury goods group LVMH
"I think it should be just sluggish. Stable to slightly negative," Jean-Christophe Babin said in an interview, but added sales in the key U.S. market had fallen 10 percent in November.
"The market is clearly tougher, with consumers short of cash and more importantly many retailers are very cautious about their purchases. Selling a watch here is much more difficult than it was a year ago," he said. ($1=1.124 Swiss Franc) (Additional reporting by Katie Reid; Editing by Sharon Lindores, John Stonestreet)