Loading...
See More

Swatch sees healthy 2013

Jan 10 2013 09:32 Reuters


Related Articles

Swatch stock falls as founder dies

Richemont up as Swatch keeps target

Franc's rise should be curbed: Swatch

Gucci vs Guess

Retail sales down ahead of festive season

Foschini reports increase in earnings

 
Zurich - Swatch Group, the world's biggest watchmaker, has beaten expectations with a 14% rise in full year sales, after taking market share from rivals.

"The 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," Swatch said on Thursday.

The Swiss group posted 2012 sales of 8.14bn Swiss francs ($8.8bn), compared with a forecast for 8.05bn in a Reuters poll. 

Swatch had said several times that reaching the 8bn franc target would be challenging due to the impact of a weak dollar and slowing growth in debt-stricken Europe and the important Chinese market. 

Known for its colourful plastic, Swatch watches and high-end Breguet and Omega brands, the company is the first luxury goods group to report 2012 sales. Peer Richemont will post a trading update on Jan 21. 

Sales growth in the global luxury market is estimated to have slowed to 5% in 2012 from 13% in 2011, as Chinese and European customers rein in spending, consultancy Bain & Co and luxury goods trade body Altagamma said recently.

LVMH has seen sales growth slowing, and Burberry  and PPR's Gucci have warned of tough trading in growth market China.

However, while cooling Chinese growth has dampened demand for ultra-pricey timepieces, Swatch has reported that mid-priced watches are still flying off the shelves in China.

Strong demand for Swiss watches in China's second-tier cities and other Asian markets should continue to drive export growth in the next 12 months, a recent survey of 50 Swiss watch executives found. 

Swatch said it expected to report "good" operating profit and net income for 2012 - due on Feb 21 - taking into account marketing expenses for the London Olympic Games and unfavourable currency swings.  ($1 = 0.9271 Swiss franc)

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

swatch  |  retail industry
NEXT ON FIN24X

 

Lastest Articles

Here is how to check your credit score and manage it Read More...
Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...