Advanced Search

Virus Hits Swatch Group’s Bottom Line

Jul 21, 2020 2:14 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Swatch Group, the owner of Harry Winston and Omega, recorded the first half-year loss in its history as the coronavirus devastated sales from February onward.

Sales dived 46% to CHF 2.2 billion ($2.34 billion) in the six months ending June 30 as the pandemic forced the closure of up to 80% of stores. This led to a loss of CHF 308 million ($328 million), compared with a profit of CHF 415 ($442 million) a year earlier, the company said last week.

“I have never thought it could happen that in the free world you have orders from government to shut down your operations,” said Nick Hayek, Swatch Group’s CEO, in a video presentation. “Now of course, this impacted us very strongly.”

While January was robust, the company’s performance subsequently deteriorated as economies around the world entered various states of lockdown. Sales of jewelry and watches, the group’s largest segment, dropped 47% to CHF 2.07 billion ($2.2 billion) for the half year.

However, figures in China improved sharply when the country reopened, the company noted. Retail sales in the important market jumped 76% year on year in May and rose 60% in June following heavy slumps earlier in the year.

“The moment the shops were open again, and — more important psychologically — [people’s fears] disappeared, the habit to buy beautiful things and brands came back very quickly,” Hayek observed.

Image: A Harry Winston store on Old Bond Street, London. (Shutterstock)
Tags: China, Coronavirus, COVID-19, Harry Winston, Jewelry, Nick Hayek, Omega, Rapaport News, Swatch, swatch group, watches
Similar Articles
Birks 140Birks Sales, Profit Back on Track
Nov 23, 2021
Sales at Canada-based jewelry retailer Birks Group soared and the company returned to profitability in the first
NRF October 140US Retail Sales Jump as Holidays Start Early
Nov 17, 2021
US retail sales rose in October as consumers began holiday shopping earlier to avoid shortages amid supply-chain disruptions,
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2021 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.