Lower six-month results for Swatch Group
The Group generated net sales of CHF 4,078 million, -3.7% at constant exchange rates compared to a very strong previous year, and -4.4% at current rates. Operating result decreased by -13.0% to CHF 547 million compared to the previous year. Operating margin was 13.4% (previous year: 14.7%). Net income totaled CHF 415 million (-11.3% compared to the previous year) or 10.2% of net sales (previous year: 11.0%). The Swatch Group anticipates strong growth in the second half of 2019, on the one hand, due to continuing solid demand in the most important markets, and on the other hand, due to the fact that the second half of 2018 was characterized by a poor fourth quarter. The launch of numerous innovative new products by the brands in all price segments will further stimulate sales. The successfully implemented e-commerce, especially in the middle and basic segment, will generate dynamic growth in the second half of the year. The Group expects positive sales growth for the entire year in comparison to the previous year.