NEWS UPDATE : Swatch Group 2016 first half profit lowest in seven years

 

Further to a post from a few days ago, the Swatch Group has reported its lowest first-half profit in seven years as demand cratered in Hong Kong, France and Switzerland.

The operating profit for the first half of the year declined 53.6 percent from 761 million CHF to 353 million CHF.

Sales were down 11.4 percent from CHF 4.2 billion in the January-June period in 2015 to CHF 3.7 billion CHF this year, but CEO Nick Hayek estimates that sales for the year may fall up to 6 percent.

Swatch2016July

Although the Group, like the industry in general, is finding the important Hong Kong market difficult, they also report that Mainland China is showing signs of improvement, and that the U.K. is showing signs of improvement, in large part due to summer tourism and also the weak GBP.

Despite the results Mr Hayek reports that there are no plans to cut jobs, with the only employee number reductions a result of not filling positions when someone leaves. You can find the Swatch Group’s official statement on their half yearly report at this link.



Categories: Industry news, News, watches

Tags:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: