Last week, Swatch Group reported that its net sales were up four per cent at constant exchange rates to $4.44 billion in the first half of the year.
The company notes that sales increases were recorded in most regions during this period, with the exceptions of South Korea and Hong Kong (both of which have experienced slowdowns in tourism). Meanwhile, Mainland China continues to grow for the watchmaker, particularly for their high- and mid-range brands.
While sales managed to stay ahead, the “overvalued” Swiss franc did have a negative effect on earnings for the company, causing its net income to fall 19 per cent year-over-year to $573.1 million. Despite this, Swatch still anticipates a strong second-half performance.
Additionally, operating profit reached $796.4 million in the half-year period, which is 8 per cent below the first half of 2014 due to “significant currency shifts in the recent past,” says Swatch Group.
Swatch also reported good growth for its retail business—in the United States, the Swatch brand quintupled sales of its mechanical watches. In the second part of the year, the group will launch the Omega Master Co-Axial with METAS certification—which is tied to the new James Bond franchise—and its two Swatch-brand smartwatches, the Touch Zero One and the Swatch NFC with near-field communication. CJ