Swatch Group – Excellent 2017 Results
The Swatch Group had an excellent 2017. Watch and jewelry sales, which account for 96% of group revenue rose 7.3% at constant exchange rates in 2017 (6.9% at current xrates) to 7.70 billion CHF. Overall revenues jumped 5.8% (constant) and 5.4% (current) to CHF 7.96 billion. Net income increased by an amazing 27.3% to CHF 755 million. These results end two years of decline.
These results are the best indicator yet that the Swiss watch industry has entered a recovery that started in the second half of 2017. December 2017 saw the second-best monthly sales in the history of the Swatch Group.
The strongest increase was seen in the luxury segment consisting of the brands Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, and Omega. The low- and mid-priced brands also showed positive results. Sales were strongest in the Asia/Pacific region, particularly China.
One factor in the turnaround was its no-layoff policy. Swatch employs around 35,000 people and has a policy of few-to-no layoffs during downturns. The clever strategy of deliberately maintaining jobs enables Swatch to respond quickly when business picks up Hayek says. That approach differs from other firms in the industry.
The Swatch Group anticipates further very positive growth in local currencies in 2018.
