Press release
• Sales in the Watches & Jewelry segment rose in local currency by a strong 32.9% (30.6% in CHF) compared with the first half 2009 and by 10.1% (9.3% in CHF) compared with the previous record half-year 2008.
• Performance substantially better than the export figures for the first six months of 2010 published by the Federation of the Swiss Watch Industry.
• The Group's gross sales of CHF 3 031 million exceeded the 3 billion mark for the first time in the first half-year, an increase of 22.2% versus 2009 and 2% compared with 2008.
• Significant increase of 81.4% in operating profit to CHF 626 million or 21.8% of net sales.
• Net income 54.5% higher at CHF 465 million or 16.2% of net sales.
• Continued strong growth in July for watches across all segments and regions (in local currencies).
• Positive outlook for the second half-year with the launch of numerous new products, such as, for example, the Breguet world exclusive chronograph “Type XXII 10Hz”, which was personally initiated and introduced by the recently deceased Nicolas G. Hayek.
Enki Bilal Collection, Swatch 2010 . © Swatch
Outlook
Growth has been solid in July, and we expect a strong result for the second half of 2010 in terms of both sales and profit. The Swatch Group will continue to expand its successful retail activities globally in the second half of 2010, for example with the opening of the Breguet boutique on the “Bahnhofstrasse” in Zurich. The major challenge will be to quickly overcome the capacity bottlenecks which already exist in some production areas.
Following the tragic event of the sudden death of its founder and Chairman of the Board of Directors Nicolas G. Hayek on 28 June, the Group, within 48 hours, unanimously elected Mrs Nayla Hayek as the new Chair of the Board of Directors. The executive positions at Breguet and Jaquet Droz which became vacant were also immediately filled with the appointment of Marc A. Hayek. This shows again that the Group, when faced with exceptional circumstances, acts with strong leadership - quick, calm and long term.
