Swatch sees sharp rise in watches sales in H1

24 Aug '05

2 min read

Watch maker The Swatch Group Ltd commented on the first half of the year and outlook for 2005.

Marked rise in Group sales despite high basis for comparison with the previous and continued negative currency influences.

Increase in operating result to CHF 299 million before and CHF 293 million (+9.3%) after extraordinary items respectively.

- Above-average increase to CHF 267 million (+21.4%) in Group net income, due to a strong financial result.

- Growth in sales of high-end watches significantly higher than the statistics published by the Fédération Horlogère.

- Sharp rise in sales in the watches, movements and components production segment.

- Slight decline in electronic systems, but clear indications of recovery in June.

- Positive outlook for the second half-year and 2005 as a whole.

Click here to see the results:

Group gross sales in the first half-year rose organically by +7.5% and, adjusted for currency fluctuations, by +6.1% in Swiss francs. Currency movements in the period under review had a negative impact of –1.4%.

Despite a high basis of comparison with the previous year, the Group achieved a significant increase in sales during the first half-year. Demand appears to continue unabated, particularly for watches in the upper price bracket.

This trend was clearly in evidence at the World Watch and Jewellery Show in Basle as well as in subsequent months. The movements sector also recorded strong growth on a par with the

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