Save E-mail

Send this URL to a friend:

* - Denotes a required field.
Your Name*
Your Email Address*
Friend's Name*
Friend's Email Address*
Subject*
Message*

Print

Biel/Bienne--Swatch Group reported a nearly 30 percent increase in watch and jewelry sales in the first half of the year, with both total sales and profits reaching record levels.

Despite capacity bottlenecks, Swatch reported that sales in its watches and jewelry segment reached $3.70 billion as compared to $3.26 billion in the first half of 2010. The company said that lower sales that resulted from events including the natural disaster in Japan and the economic crisis in Greece were offset by strong sales in other parts of the world.

Gross sales for the group were $4.26 billion, up 24 percent and exceeding the half-year record set in 2010. Operating profit was up 21 percent to a record $958.6 million.

Sales in the company’s production segment, which manufactures watches as well as watch movements and components, grew 29 percent. Swatch said it is investing in its operations in order to reduce production bottlenecks and increase capacity.

Also during the first half of the year, Swatch announced that it has asked the Swiss Competition Commission (COMCO) to launch an investigation to determine how the company could gradually reduce the amount of mechanical watch movements it makes for other companies. Swatch wants to reduce its role as a movements supplier in the industry, forcing other watch companies to depend less on it and invest more in engineering.

Sales for Swatch’s electronic systems segment were up 9 percent to $235.9 million.

Despite the ongoing problems in the world’s economy, Swatch said the second half of the year “remains promising” with sales strong through July.

“The Group will continue to consolidate its global market presence and invest further in production capacities and staff training in order to maintain its strategy of healthy and sustainable growth,” Swatch said. “Continuing strong growth and the positive outlook in local currency will, however, be hampered by uncurbed speculation in the Swiss franc. This will further negatively impact sales growth as well as operating profit and net income.”

One of the world’s biggest watch companies, Swatch has a total of 19 brands under its umbrella, including names such as Swatch, Omega, Tissot, Rado, Longines, Breguet and Blancpain.