Swatch Group has just announced its first half-year report 2019 and the results aren’t positive. Both sales and profitability have been impacted, after a positive year 2018. However, the Swatch Group anticipates full-year revenue growth.
At just over CHF 4 million, the group’s net sales are down 3.7% at constant exchange rates and down 4.4% at current rates. The operating result is down 13% at CHF 547 million. The net income is also impacted by the decline in sales.
As a comparison, Swiss Watch Exports have grown 4.1% over the first five months of 2019. The export statistics indicate an overall positive market trend. The industry performance is driven by the high-end segment but the entry-level segment – in which the Swatch Group is active with Hamilton, Mido, Tissot or Swatch – is under pressure.
Swatch Group states that the comparison basis was particularly high. Indeed, last year, half-year sales were up 14.7% at current exchange rates. On a positive note, echoing the overall positive trends for these markets, Swatch Group sales are growing in mainland China, Japan and the USA. Own retail and e-commerce sales are reported up. Last, action against grey market dealers is reported “at the expense of a short-term negative impact on sales in the first half-year in the triple-digit million“.
Swatch Group still expects positive annual growth for 2019. The group anticipates strong demand and a more favourable comparison basis.
For more information, please visit www.swatchgroup.com.