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Swatch Group Profits, Sales Rise in 1H
Jul 24, 2012 4:19 AM
By Avi Krawitz
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RAPAPORT... Swatch Group posted a strong first half of 2012 as sales of its watches and jewelry improved in all regions and price segments. Net income rose 25 percent year on year to $729 million (CHF 724 million) during the period that ended on June 30, while net sales increased 16 percent to $3.71 billion (CHF 3.68 billion).
The company noted that high gold and diamond prices and the overvalued Swiss franc continue to put pressure on margins.
Swatch Group’s watch and jewelry unit, which include the high-end Breguet, Blancpain and Omega brands, recorded a net sales increase of 18 percent to $3.26 billion (CHF 3.23 billion). The segment’s operating profits grew 16 percent to $723 million (CHF 718 million), despite a strong rises in material costs, the company said. Net sales at Swatch’s production unit rose 26 percent to $1.2 billion (CHF 1.19 billion).
Swatch stressed that it is on track to achieve record sales of $8.06 billion (CHF 8 billion) in 2012 despite certain risks affecting its business. The group clearly sees more opportunities than risks for the future, despite some negative trends such as in the exchange rate and weaker euro and a certain weakening in the high-end segment in parts of Greater China, according to the company's statement.
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Tags:
Avi Krawitz, diamonds, Jewelry, Rapaport, Swatch, Swiss watches, watches
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