Half-Year Report 2015

Swatch Group

Biel / Bienne (Switzerland), 16 july 2015 – Half-Year Report 2015: Swatch Group – Growth despite massively overvalued Swiss franc

  • The Group’s net sales were up 3.6% to CHF 4 248 million at constant exchange rates or 2.2% to CHF 4 192 million at current rates. Calculated in euros, the Group grew by 18.7%.
  • In the Watches & Jewelry segment, including Production, the Swatch Group grew by 3.4% at constant exchange rates in comparison with the declining export of wrist watches of the Swiss Watch Industry of –1.1% at the end of May.
  • Accelerated growth in May and June 2015.
  • Operating profit of CHF 761 million, 8.3% under the first half of the previous year, due to significant currency shifts in the recent past. Nevertheless, operating margin reached 18.2% for the Group.
  • In the Watches & Jewelry segment, including Production, the operating margin reached 20.0%.
  • Swiss franc shock and negative interest rates result in a lower net income of CHF 548 million, 19.4% below the first half of 2014.
  • Positive outlook for the second half of the year, with the launch of new products such as Omega’s new James Bond Edition, the introduction of the Omega Master Co-Axial with METAS certification, the Swatch Touch Zero One and the Swatch NFC (Near Field Communication) as a contact-free means of payment; as well as with the additional increase in capacity at Tissot for its very successful T-Touch Expert Solar.

Outlook

The outlook for the Group in all regions and segments remains very good. Despite the Swiss franc dilemma, Group Management expects a strong second half 2015.

Tourism in South Korea will stabilize again after MERS and sales in Greater China and other regions will further increase in local currency. For all brands, this growth will be supported by a high level of marketing investment, an expanded retail network and also by the many new product launches in all segments.

The high consumer demand worldwide for Swiss watches continues very dynamically across all segments, particularly also in the area of mechanical watches.

Under these circumstances, and also remaining focussed on the successful long-term strategy to increase market share, further very positive growth in local currency is expected.

Related news

Changes in the Executive Management Board
AD HOC

Changes in the Executive Management Board

The Executive Group Management Board of Swatch Group will welcome two new members. Mr. Damiano Casafina, CEO of the production company ETA, and Mr. Sylvain Dolla, CEO of the Tissot brand and member of the Group's Extended Group Management Board, were elected to the Executive Group Management Board at the last meeting of the Swatch Group Board of…

Message from the Chair

Message from the Chair

Message of Nayla Hayek, Chair of the Swatch Group Board of Directors, on the occasion of the Annual General Meeting of May 8, 2024, in Biel (BE), Switzerland. The original spoken text (in German) is valid. Ladies and Gentlemen,Dear fellow shareholders Once again this year, I would like to welcome you virtually as, despite our best efforts, we…

Ordinary General Meeting of Shareholders

Ordinary General Meeting of Shareholders

The Ordinary General Meeting of Shareholders has been held virtually in accordance with article 12 ff. of the Articles of Association on Wednesday, May 8, 2024. The shareholders approved, by a large majority, all proposals submitted by the Board of Directors, including the election of Mr. Marc A. Hayek as a new member of the Board of Directors.…