Swatch Group: 46% drop in half-year sales
After a strong January with an operating margin of 21.4% in the Watches & Jewelry segment (without Production) and 17.3% for the overall Group, the company observed a massive decline due to state-ordered closings of at times up to 80% of distribution channels worldwide. At CHF 2,197 million, Group half-year net sales were down 43.4% on the previous year at constant exchange rates, or -46.1% at current exchange rates. The strong appreciation of the Swiss franc led to a decline in sales of CHF 113 million, or -4.9%. The operating loss was CHF 327 million compared to the operating profit of CHF 547 million in the previous year. The Group’s management is convinced that the sales and profit situation will improve quickly in the coming months, parallel to the further easing of Covid-19 measures in the countries. A positive operating result is expected for the full year.