Swatch Group has reported growth in the first half of 2015 despite the negative effects of a resurgent Swiss franc, which it described as ‘massively overvalued’.
Sales across the group, which includes Omega, Breguet, Tissot and Swatch among others, were up 3.6 percent to CHF4.248 billion (£2.85bn), or 2.2 percent and CHF 4.192bn using current exchange rates. When calculated in euros, sales were up 18.7 percent.
The results fly in the face of overall industry trends, with overall Swiss watch exports dipping 1.1 percent, up until the end of May.
Swatch Group witnessed ‘accellerated growth’ during May and June. The group managed an operating profit of CHF 761million during the H1 period, which was down 8.3percent on the same period in 2014. Operating margin reached 18.2 percent. Net income totalled CHF 548million (£368m).
Swatch Group’s Half-Year Report points to a positive second half of 2015 with a James Bond watch METAS-certified Master Co-Axial from Omega, Touch Zero One and a Near Field Communications (NFC) contactless payment system from Swatch and increased capacity for the successful Tissot T-Touch Expert Solar.
The report stated that the group’s long-term strategy of Swiss manufacturing, gaining market share and further expansion of its own retail network remained unchanged. It also prioritised a long-term “defensive price adjustment policy” over short-term profit. The group now employees more than 36,000 people worldwide.