Swatch Posts Record H1 Results

Watch and jewelry sales by Swatch rose to CHF 2.57 billion ($2.47 billion), a 32.9 percent increase in local currencies, 30.6 percent in Swiss francs in the first half of fiscal 2010. The Swiss watch company reported group gross sales of CHF 3.03 billion ($2.92 billion), a 22.2 percent increase versus 2009 and 2 percent compared with 2008.

This is the first time that Swatch’s total sales crossed the 3 billion mark in the first half-year. Underscoring the strong results, watch and jewelry sales increased by 10.1 percent (9.3% in CHF) compared with the record half-year 2008 sales.

Net income leaped 54.5 percent to CHF 465 million ($447.6 million) or 16.2 percent of net sales.

Swatch reported continued strong watch sales in July across all segments and regions, saying in its outlook that it expects strong sales and profit in the second half of 2010.

The group plans to continue expanding its retail activities globally in the second half of the year, for opening a Breguet boutique on the Bahnhofstrasse in Zurich. The major challenge will be to quickly overcome the capacity bottlenecks which already exist in some production areas.

Following the June 28 death of Swatch founder and Chairman Nicolas G. Hayek, Nayla Hayek was unanimously elected as the new Chair.