INDUSTRY NEWS - Swatch Group Forecasts Sales & Profit Losses for Half-Year Results

Based on net sales of the Swatch Group expected to be lower of some 12% in the first half-year 2016, resulting from the decreased sales in important markets like Hong Kong and partially Europe, especially France and Switzerland (while mainland China develops positively), the Swatch Group operating profit and the net income are expected to be lower of some 50% to 60%. The losses are due to the decrease in sales, but also due to the tradition and the industrial long term philosophy of the Swatch Group to consider its employees not just as a cost factor but to keep them (also in spite of important cancellations of orders from third parties), to maintain investments in new products and marketing and to pursue a defensive price increase policy.

The Swatch Group half-year results will be published on Thursday, July 21.

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