Record half-year sales for Swatch Group
Echoing the positive industry trend and in line with expectations, Swatch group, the largest watchmaking consortium just announced record half-year sales for 2018.
The group’s net sales increased by 14.7% to CHF 4,266 million at current exchange rates, respectively by 12.6% at constant rates reflecting the improvement of the business environment after a prolonged downturn (Swatch group sales were up 5.8% in 2017 and down 10.6% in 2016). Growth is reported for all regions and is led by Asia and America.
As a comparison, Swiss watch exports have increased by 9.9% over the first five months of 2018. LVMH and Kering will communicate their first semester results next week. Richemont will announce interim results in November.
As a result, the group’s operating result has soared by 69.5% to CHF 629 million with an operating margin improved from 10.0% in the previous year to 14.7%.
The group outlook for the second semester is also positive with further expansion forecasted. Swatch Group also confirms its strategy with a focus on ‘verticalization of production, presence in all segments, strong separate identity for each brand, not only in marketing but in movement concept and production, production facilities of the individual brands are made accessible to the consumer in an attractive manner’.
Swatch Group is active in the manufacture and sale of watches, jewellery and watch components. Its 18 brands include Breguet, Blancpain, Omega, Harry Winston, Longines, Tissot and Swatch. Its production companies are key suppliers of watch components and movements for third-party watchmakers.
For more information, please visit the press room at www.swatchgroup.com.