Swatch gross sales up 14 per cent

Posted January 14, 2013 | By Emily Mobbs • Former Editor

Swatch Group has reported strong 2012 performance results, with gross sales totalling $8.45 billion (8.14 billion Swiss francs), a 14 per cent increase from the previous year.

The Swiss watch giant reported in a statement that its brands performed well in all regions and price segments, notably also outside of China.

Its gross sales in the watches and jewellery segment increased by 15.6 percent year-over-year to almost $7.58 billion.

According to the statement, the company’s production segment expanded its capacity resulting in a 10.1 per cent increase in gross sales to $2.30 billion. Its electronics systems segment was “still exposed to a combination of strong price pressure and adverse exchange rates” and, consequently, gross sales decreased by 7.4 per cent in 2012.

The company noted that although high marketing expenses for the London Olympic Games – its brand Omega was a sponsor – and “unsatisfactory currency development” would affect 2012 profits, it still expected good operating profit and net income.

Following a recent fall in European shares, Swatch CEO Nick Hayek told Reuters: “[He] expected Swiss watch exports as a whole to grow five to seven per cent in 2013, down from the 12.6 per cent growth recorded for the 11 months up until November 2012”.

According to Reuters, shares in LVMH, the world's largest maker of luxury goods, lost 1.1 per cent, Hermes fell 1.8 per cent, Richemont dropped 2.1 per cent and Swatch fell 0.8 per cent.

Swatch is staying optimistic and expects “healthy growth” in 2013. The company reported strong sales for the first 10 days of January 2013.