In an early warning ahead of the Swatch Group’s announcement of its half yearly results, President Nick Hayek has announced that the Group’s profits dropped by 60 percent for the first six months of 2016. The drop is mostly due to falling sales in Hong Kong and Europe, particularly France, where the number of potential tourists will no doubt be further affected by the Nice attack, and Switzerland.
For those who read our recent post regarding the Swatch Group asking the Swiss Competition Commission Weko to allow them to sell more ETA movements, this news about the Group’s profit drop may not be surprising, although the amount may be.
The Group will publish its full results on July 21, 2016.
Switzerland’s watch exports have now dropped for eleven consecutive months. The most recent FH update for 2016 reported that the downturn in Swiss watch exports continued in May, with their value dropping 9.7% compared to last year to stand at 1.6 billion francs, with falls in all price segments.