Swatch Group posts sales growth
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Business
The company said in a statement that net profit rose by 8.1 percent to 890 million francs since there was a negative currency impact of 554 million Swiss francs or 7.4 percent, which weighed on profitability. The rapid erosion of major currencies against the Swiss franc could not be offset by continuous price adjustments.
The company added that despite the challenging currency environment and the deliberate increased investments in marketing, watches & jewellery segment including production maintained the same strong operating margin as in the previous year, at 17.2 percent.
In Asia, double-digit growth was achieved in Hong Kong SAR, Macao, Thailand, India, Japan, and China. Europe posted single-digit sales growth, though sales rose in Switzerland with a rise of over 30 percent. In North America, the strong growth trend continued, with the Omega, Tissot and Swatch brands posting strong growth.
The share of the segment's total sales attributed to retail rose to almost 45 percent. Average sales per store were up 20 percent year on year. Swatch posted record growth of over 60 percent, followed by Longines, Tissot, and Harry Winston with growth in the high double digits.
The group anticipates opportunities for further growth in local currencies in 2024. The company expects jewellery brand Harry Winston to surpass one billion in turnover in 2024. The brands Swatch and Tissot, as well as Longines, will continue to develop strongly in the lower and medium price segments. Omega will benefit from a global media presence as the official timekeeper of the Olympic Games in Paris.
The company further said that America and Japan will continue to offer great growth prospects for the group's brands. In China, the Swatch Group will enjoy additional demand with its strong brands in the lower and medium price segments. Exchange rate movements will continue to impact the group's results due to its strong industrial base in Switzerland.