Swatch Group’s sales grew in all price ranges and on every continent, as it adapted its business strategies.
Revenue rose 2% year on year to CHF 3.12 billion ($3.84 billion) for the first half of the year, the owner of brands including Omega, Tissot and Harry Winston reported Wednesday. Sales improved 9% at constant exchange rates, with currency fluctuation affecting the final figures. The launch of new products and improved efficiency across the retail business contributed to the positive results, the group added.
Sales of jewelry and watches rose 2% to CHF 2.95 billion ($3.63 billion). Electronic systems and corporate activities generated other revenue.
The watches and jewelry division delivered strong results, with the US gaining 27% and most European markets seeing a positive trend. Spain was up 28% and Italy 12%. Sales also climbed across Asia and Oceania, led by Japan at 20%, South Korea at 12% and Australia at 5%. High-potential markets such as India, Mexico and Saudi Arabia delivered particularly strong gains. In China, including Hong Kong and Macau, retail sales rose 9% despite an unchanged store network, the company reported.
Group net profit dropped 6% to CHF 16 million ($19.7 million).
Stronger sales in May and June, which continued into the first weeks of July, pointed to significant growth in the second half of the year, Swatch predicted.
Image: A Swatch store in Guangzhou, China. (Shutterstock)