Swatch Group reports strong double-digit sales growth in 2012

Swiss watch giant Swatch Group has announced gross sales of CHF8,143 million (US$8,893 million) for 2012, a +14% increase over 2011.

Sales in the Watches & Jewellery segment grew by +15.6% to CHF7,297 million (US$7,969 million) with double-digit growth rates for almost all brands, including markets outside of Greater China.

Considering the 2012 sales the company highlighted production segment with additional expansion of capacity, and said it was expecting good operating profit and net income “taking into account the significant marketing expenses for the Olympic Games in London and unsatisfactory currency developments”.

“As expected,” Swatch stated, “the first 10 days of January once again indicate positive growth in 2013.”

The company added that its strong Group brands performed “convincingly” in all regions and price segments, notably outside Greater China as well, and “realised further conspicuous growth in market share”. As a result, gross sales in the watches and jewellery segment increased.

In the Production segment, Swatch said capacity was “again adapted and expanded, resulting in improved performance” leading to an increase in gross sales of +10.1% to CHF2,218 million (US$2,324 million).

“Existing bottlenecks were further reduced in 2012,” the company added.

“The Electronics Systems segment is still exposed to a combination of strong price pressure and adverse exchange rates. As a result, gross sales of CHF311 million (US$339.7 million) decreased by -7.4% compared to the previous year,” Swatch reported, adding that it expected good results for 2012 at operating profit and net income level.

Its brands have also reported a good start in the New Year and “healthy growth” is expected in 2013.

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