Swatch Group posted a strong first half of 2012 as sales of its watches and jewelry improved in all regions and price segments, Rapaport reported.
Net income rose 25 percent year on year to $729 million (CHF 724 million) during the period, while net sales increased 16 percent to $3.71 billion (CHF 3.68 billion).
The company noted that high gold and diamond prices and the overvalued Swiss franc continue to put pressure on the margins of its brands.
Swatch Group’s watch and jewelry unit, which include the high-end Breguet, Blancpain, and Omega brands, had net sales increase 18 percent to $3.26 billion (CHF 3.23 billion). The segment’s operating profits grew 16 percent to $723 million (CHF 718 million), “despite strong rises in material costs,” the company said. Net sales at Swatch’s production unit rose 26 percent to $1.2 billion (CHF 1.19 billion).
Swatch stressed that it is on track to achieve record sales of $8.06 billion (CHF 8 billion) in 2012 despite certain risks affecting its business.
“The group clearly sees more opportunities than risks for the future, despite some negative trends such as in the exchange rate and euro situation and a certain weakening in the high-end segment in parts of Greater China,” Swatch stated.
Exclusive
Sarine’s David Block: Diamond Industry at Standstill Until Chinese Demand Returns
David Block is CEO of Israel’s Sarine Technologies and has served in the position since 2012. In this exclusive interview for Rough and Polished, Block gives his opinion on the leading issues affecting today’s diamond trade.
Today
Dr M'zée Fula Ngenge: Demand for considerable-sized diamonds stronger than ever
The African Diamond Council (ADC) chairperson Dr M'zée Fula Ngenge told Rough & Polished’s Mathew Nyaungwa in an exclusive interview that although overall global diamond prices have been somewhat soft, the demand for considerable-sized diamonds...
02 september 2024
Amplats sees prospects as a standalone company
Anglo has revealed its plans to demerge Anglo American Platinum (Amplats), which has operations in South Africa and Zimbabwe, to optimise shareholder value. Rough&Polished contacted Amplats to comment on this and other issues but was referred...
19 august 2024
WFDB President Yoram Dvash Remains Confident Despite Global Diamond Challenges
Yoram Dvash is President of the World Federation of Diamond Bourses (WFDB) having been elected in 2020. He found time in his busy schedule to speak to Rough&Polished about the state of the diamond industry around the world and some of the major...
12 august 2024
Lyudmila Vysotskaya: Amber is a mystical stone, a living substance
Lyudmila Vysotskaya is a Kaliningrad-based amber artist and designer, expert, chairwoman of the Amber Academy and member of the Creative Union of Artists in Decorative and Applied Arts. This summer, visitors could admire the art works by Lyudmila Vysotskaya...
30 july 2024
