News Flash

Swatch core segment posts new record figures once again

14 Mar '08

3 min read

Through these two measures the Group is demonstrating that it is strongly committed to actively managing its balance sheet and repaying cash which is not required for operations to its shareholders.

Watches & Jewelry:
The Swatch Group delivered another strong performance in its core segment «Watches and Jewelry» in the 2007 financial year, posting new record figures once again. This extremely positive trend was already visible as early as spring 2007 with the huge demand and numerous orders received at the BaselWorld watch and jewelry show.

All price segments delivered double-digit sales growth, helping to boost profitability across the board. The Group's geographic positioning and its proprietary presence with mono-brand, tourbillon and multi-brand stores further improved its proximity to consumers and impacted positively on sales. At the same time, it also facilitated the expansion of the jewelry business.

Operating profit increased by an above-average 24.7% to CHF 920 million, corresponding to an operating margin of 20.6% (compared with 19.8% in 2006). The price adjustments implemented in the previous year impacted positively on margins in the period under review, partially compensating for the effects of further increases in the price of precious metals, diamonds and other raw materials. Marketing expenditure was also increased and retail activities further expanded to ensure the Group's continued long-term growth.

From a geographic perspective, all regions delivered positive results, with Asia, Europe and the USA performing particularly well. Sales were somewhat flatter in Japan, however. All Watches and Jewelry segment brands have additional growth potential in all geographic regions.

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The Swatch Group Ltd

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