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Swatch Braces for Plunge in 1H Profit
Jul 19, 2016 9:59 AM
By Rapaport News
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RAPAPORT... The Swatch Group warned sales and profit will plummet when the company reports its first-half results later this week.
The watch maker, which owns the iconic Harry Winston jewelry brand, said net revenue is forecast to drop 12 percent because of weakness in important markets such as Hong Kong, France and Switzerland. Mainland China continues to develop positively, according to a statement.
Net income and operating profit is expected to slump 50 percent to 60 percent as the group decided against the mass-layoff route to cut costs even as “important” orders were cancelled in the period under review. In addition, Swatch continued to invest in new products and marketing, as well as adopted a “defensive” price-increase policy.
The company said its full results will be published Thursday, July 21.
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Tags:
diamonds, Harry Winston, Jewelry, Rapaport News, Swatch
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