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Swatch Group Rebounds Amid Luxury Recovery
Jan 26, 2022 3:42 AM
By Rapaport News
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RAPAPORT... Swatch Group gave a positive outlook for 2022 after enjoying a jump in annual sales and a return to profit.
Revenue climbed 31% year on year to CHF 7.31 billion ($7.96 billion) in 2021, the luxury group reported Tuesday. Sales of jewelry and watches, the company’s dominant category, rose 31% to CHF 7.01 billion ($7.63 billion). Its electronics division accounts for most of the remainder.
Net earnings leaped to CHF 774 million ($841.9 million), compared with a loss of CHF 53 million ($57.7 million) in 2020.
Management said it anticipated double-digit sales growth in local currencies in 2022, driven by new products across its brands and segments.
Sales in 2021 were still 11% lower than in 2019, reflecting the impact of the Covid-19 pandemic on consumer spending, especially among tourists. The situation improved during 2021, with fourth-quarter figures exceeding 2019 levels at constant exchange rates, according to the company, which owns Omega, Longines and Harry Winston.
Travel was “still severely restricted in some cases,” leading to a shift in the regional spread of sales, Swatch Group explained. Mainland China and the US saw “record sales levels,” it added.
The group is the latest luxury conglomerate to report sharp sales growth for 2020, after Richemont saw a 35% increase, led by jewelry. LVMH, which owns Bulgari, is scheduled to release full-year results on Thursday.
Image: Omega watches in a showroom in Mulhouse, France, December 2019. (Shutterstock)
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Tags:
Asian Games, Beijing, Bulgari, COVID-19, Europe, Hangzhou, Harry Winston, Jewelry, Longines, LVMH, mainland china, Olympic Winter Games, Omega, Rapaport News, retail, Richemont, Swatch, swatch group, tissot, watches
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