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Swatch Group's 1H Sales +2%, Profit -19%

Jul 16, 2015 4:33 PM   By Jeff Miller
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RAPAPORT... Swatch Group's sales rose 2.2 percent year on year to $4.4 billion (CHF 4.192 billion) during the first half of 2015. Profit fell 19.4 percent to $572 million (CHF 548 million).

In the company's watches and jewelry segment, including production,  sales growth registered an increase of 2 percent at current rates to $4.2 billion (CHF 4.045 billion), and  3.4 percent at constant-exchange-rates. Electronic systems sales rose 7.6 percent to $163 million (CHF 156 million). Group sales were reduced by 1.4 percentage points due to the "massively overvalued" Swiss franc, Swatch stated.

The company added that the financial and currency shock of  January 15 "caused by the Swiss National Bank (SNB)" created an imbalance in sales prices compared with Switzerland, particularly in euro countries. To drive this point, sales grew by 18.7 percent calculated in euro. Nonetheless, Swatch vowed to maintain its long-term strategy of a "defensive price adjustment policy over short-term profit."

Swatch's management  anticipates a positive outlook for the second half of the year, despite "the Swiss franc dilemma." Growth will be supported by a high level of marketing investment, an expanded retail network and through many new product launches in all segments, the group stated.



Tags: currency, financial, franc, Jeff Miller, Jewelry, revenue, Swatch, watches
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