EditorsMay 07, 2024
10 On-Theme Looks from the 2024 Met GalaStars adorned themselves in emeralds, platinum, and myriad bird motifs, writes Associate Editor Natalie Francisco.
FinancialsFeb 01, 2019
Economic Tensions Take Toll on Swatch Sales
Despite lower-than-expected 2018 sales, the Swiss watch company has high hopes for the year ahead.
Pictured here is Omega’s Seamaster Professional Diver 300, updated for the watch brand’s 25th anniversary and unveiled at Baselworld 2018.
Biel/Bienne, Switzerland—Swatch Group posted lower-than-expected full-year results as trade and economic tensions weighed on sales in Asia and France.
In its annual report, the Swiss watch company reported sales rose nearly 6 percent to 8.48 billion Swiss francs ($8.54 billion) compared with the 7.98 billion Swiss francs ($8.03 billion) reported in 2017.
Its watches and jewelry segment, which includes brands like Tissot and Longines, accounted for 8.21 billion Swiss francs ($8.26 billion) of the total.
Net profit for the year rose nearly 15 percent to 867 million francs ($872.33 million), ahead of the 755 million ($759.64 million) Swiss francs in 2017.
Still, the results fell short of the 8.65 billion francs ($8.70 billion) in sales and 952 million francs ($957.86 million) in profit that Reuters analysts had expected. Its 8 francs ($8.05) per share dividend was also lower than analysts had forecasted.
Looming fears of a trade war coupled with a slowing Chinese economy took its toll on sales of luxury watches both in China and when its residents traveled abroad.
“High growth rates were achieved again in Asia, both in wholesale and in the group’s own retail including e-commerce, although a downturn in demand occurred in the last three months of the year, particularly in wholesale,” Swatch said in a statement.
The company saw positive growth in Japan and North America, but Europe was a bit more complicated. While Great Britain and Switzerland increased sales, France’s “yellow vest” protests, fueled by the belief that the French government’s economic policies favor the rich, cut into end-of-year sales.
Looking ahead, Swatch plans to turn the year’s lemons into lemonade, forecasting that “China will become a major opportunity for the group in 2019, even if ongoing market turbulence remains disruptive.”
The company said 2019 has started off on a high note, experiencing solid growth in the month of January.
In its jewelry segment, Swatch pointed to Harry Winston as a brand gearing up for strong growth in 2019, following its $50.37 million November purchase of the Pink Legacy, an 18.96-carat fancy vivid pink diamond once belonging to the billionaire Oppenheimer family behind De Beers.
In the watch division, the company has high hopes for Blancpain’s Fifty Fathoms collection as well as Omega’s products celebrating the 50th anniversary of the moon landing and the brand’s special edition “Minus 1” collection, launching in the second half of 2019 ahead of
Editors' Picks
Sponsored by
the 2020 Olympic Games in Tokyo.
The company struggled to meet demand for the Longines V.H.P. (Very High Precision) collection after production issues in 2018 but said solving those problems is expected to have a positive impact on the brand in 2019.
Meanwhile, Tissot is expected to introduce its T-Touch smartwatch with its own operating system this year as well, ready to take on the smartwatch competition.
The company introduced Swatch Pay, which works similarly to contactless Apple Pay, in Switzerland and plans to expand to other countries throughout the year.
A total of 212 patent applications were filed in 2018, a 15 percent jump compared with 183 the previous year, amounting to one patent per working day, according to the company.
In February, Swatch plans to launch its first Sistem51 watches with its patented Nivachron balance spring with anti-magnetic properties.
Going forward, the company said it plans to feature anti-magnetic properties in all its mechanical watches, as well as a longer guarantee period, to improve precision and reliability as well as to gain market share and a competitive edge.
More on Financials
The Latest
IndependentsMay 07, 2024
112-Year-Old New Orleans Business Popping Up in Aspen M.S. Rau is set to open a seasonal gallery in the high-end resort town early next month.
MajorsMay 07, 2024
Richemont Acquires Italian Jeweler VhernierThe branded jewelry market is thriving, said Richemont Chairman Johann Rupert.
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a TradeshowTradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
CollectionsMay 07, 2024
These ‘Luminaries’ Are Set to Light Up CoutureThe six designers, all participants in the show’s Diversity Action Council mentorship program, will exhibit in Salon 634.
Weekly QuizMay 02, 2024
This Week’s QuizTest your jewelry news knowledge by answering these seven questions.
AuctionsMay 07, 2024
Sotheby’s to Auction Sylvester Stallone’s WatchesThe highlight of his collection is the coveted Patek Philippe Grandmaster Chime, which could sell for up to $5 million.
CollectionsMay 07, 2024
Phillip Gavriel Pays Tribute to Venice With New CollectionThe “Venetian Link” series modernizes the classic Veneziana box chain in its bracelets and necklaces.
Brought to you by
Rio’s Reimagined Podcast: For the Love of JewelersMeet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.
Events & AwardsMay 07, 2024
JA Now Accepting Applications for New Bench Jeweler ScholarshipThe Seymour & Evelyn Holtzman Bench Scholarship will provide tuition assistance to two low-income students.
Policies & IssuesMay 06, 2024
Rolex Files Objection to Hallmark’s New Trademark ApplicationThe Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.
EditorsMay 06, 2024
Q&A: 8 Questions With Anglo American’s Benny Oeyen The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.
MajorsMay 06, 2024
Malabar Gold & Diamonds Opens 4th U.S. ShowroomThe Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.
Events & AwardsMay 06, 2024
Ben Bridge Jeweler Accepting Applications for Lonia Tate ScholarshipIt will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.
CrimeMay 03, 2024
Second Suspect Arrested in Murder of Colorado JewelerWheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.
CollectionsMay 03, 2024
A Sneak Peek Into PGI’s Couture Platinum Spotlight ProgramPGI partnered with four new and seven returning designers for its annual platinum capsule collection.
MajorsMay 03, 2024
Kristie Nicolosi Joins WJA Board AgainNicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.
CollectionsMay 03, 2024
Piece of the Week: A “Bit of LUV” for the DerbyKarina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian FamiliesThe men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”
SurveysMay 01, 2024
Consumer Confidence Falls in AprilConcerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on EmeraldsMay’s birthstone is beloved for its rich green hue and its versatility.
SourcingMay 01, 2024
Opsydia Names New Sales and Marketing Director Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.
CrimeMay 01, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO ShowLast month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.
CollectionsApr 30, 2024
12 Otherworldly Pieces From Tiffany & Co.’s 2024 Blue BookThe “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.
