Not all images were able to load for printing. Please close the print window and try again. Swatch Group Half-Year Report 2019 Indicates Decline in Sales and Profitability
Despite this negative performance, the group expects positive sales growth for the entire year 2019.
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.
2 responses
“As a comparison, the Swiss Watch Exports have grown 4.1% ” – I think its 1,4%, not 4,1%.
Well, 4.1% over the first five months of the year and indeed 1.4% over the first 6 months. The article was written and published before the FHS released June figures so we had a 5-month basis of comparison at the time.