Watch and jewellery sales rocketed 32.9 per cent in local currency compared with 2009, and total sales increased by 22.2 per cent, exceeding the CHF3 billion ($3.15 billion) mark for the first time in the company’s history.
The group attributed the sales growth – which included sales from watch, jewellery, production and electronic systems – to the “improved economic environment”. Total sales even rose 10.1 per cent against pre-recession, first-half 2008 figures.
“Watches and jewellery experienced extraordinarily strong growth across all segments and regions,” the company said in a statement.
The company said watches continued to experience strong sales growth across all brands and regions in July.
Swatch’s profitability dramatically improved over the period. Net income increased by 54.5 per cent to CHF465 million ($483.4 million) and operating profit soared 81.4 per cent to CHF626 million ($650.80 million).
On the back of soaring profits, operating margin increased from 14.7 per cent of net sales in the first half of 2009 to 21.8 per cent for the 2010 period.
The group is optimistic about the future and the improved economic environment.
“We expect a strong result for the second half of 2010 in terms of both sales and profit,” it said.
Swatch said that it expected higher watch and jewellery sales in the second half because of the “seasonal nature” of that category.
During the first half, Swatch Group opened boutiques in key locations around the world for its Breguet, Blancpain, Omega and Swatch brands.
The company said it intends to continue expanding its retail activities in the second half of the year with, for example, the opening of a Breguet boutique on Bahnhofstrasse in Zurich – one of the world’s most expensive and exclusive shopping avenues.
Swatch said: “The major challenge will be to quickly overcome the capacity bottlenecks which already exist in some production areas.”
The company also has a number of new product launches in the pipeline, including the Breguet world exclusive chronograph Type XXII 10Hz, which the late Swatch founder and chairman Nicolas Hayek was personally involved in developing.
The positive financial results follow the sudden death of Hayek on June 28. Hayek, nicknamed “Mr Swatch”, died of heart failure. His daughter, Nayla Hayek, has taken over the founder’s role as chair of Swatch Group.
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