Swatch Group Increases Sales, Market Share in H1

Swatch Group, the Swiss watch firm that revitalized the country’s time keeping industry, posted good results for the first half of the fiscal year.

 

With continuous global market share growth of 13.7 percent for the Group and an increase of 8.9 percent in Group sales (in local currency), Swatch shareholders have a reason to smile - especially with a 16.7 percent increase in net income to CHF 217 million ($169.2 million).

Despite additional marketing investments of around CHF 20 million ($15.6 million) for the Athens Olympic Games, the Group’s operating results increased 20 percent to CHF 269 million ($209.7 million).

The company is reporting positive outlook for the second half of the year, “even though the strong second half year of 2003 means that the benchmark is a lot higher”.

“Having already enjoyed a huge demand at the Basle International Watch and Jewelry Exhibition, watches in all categories continued to sell in large numbers in the subsequent months, therefore playing a key role in the substantial sales increase in this segment,” the company said in a statement.

Although growth spans all watch categories, the luxury and prestige segment is still expanding the fastest. The company pointed out specifically the Breguet brand, which continues to enjoy strong demand.

However, the other brands in the luxury segment – such as Blancpain, Glash?tte, Jaquet Droz, L?on Hatot, and Omega – are also selling extremely well, the Group said. Omega’s reported dynamic growth over the past few years is continuing in practically all countries and regions. Rado and Longines are also exhibiting very strong growth.

The Group did not supply specific numbers to demonstrate the growth rate.

In the basic market segment, which faces the toughest competition from non-Swiss-made watches, the Swatch brand has held its ground well – although some regions have, of course, not enjoyed the same high growth rates recorded in other segments.