Moodie Davitt snapshot: Swatch Group 2017 key figures
– Net profit up +27.3% to
– Group net sales +5.8% (constant FX)
– Watches & Jewellery +7.3%
Source: The Moodie Davitt Report
Swatch Group recorded net income of CHF755 million (€649 million) in 2017, a +27.3% year-on-year rise.
Group net sales increased +5.8% to CHF7.98 billion (€6.86 billion) at constant exchange rates, and +5.4% to CHF7.96 (€6.84 billion) at current exchange rates.
All regions posted growth, with Asia Pacific registering the strongest performance.
Swatch Group said: “The already strong position of the Swatch Group in Mainland China strengthened further due to marked growth in 2017. Sales in Hong Kong have not only stabilised further during the year, but are on growth track. Japan recorded high single-digit growth during the course of the year.
“Also in the Middle East, the Swatch Group again recorded accelerated growth. In Europe, particularly sales in Great Britain, Italy, Germany, Austria, Benelux, and also again in Switzerland increased compared to the previous year.”
Sales in 2017 rose by +7.3% in the Watches & Jewellery segment (excluding Production) at constant exchange rates and +6.9% at current exchange rates.
Watches & Jewellery sales increased +12.2% at current exchange rates in the second half of 2017 and +14.9% in the fourth quarter. December recorded the second-best monthly sales in the history of Swatch Group, the company noted.
According to Swatch Group, all price segments posted ‘dynamic’ growth, with the strongest increase in the prestige and luxury segment. Additionally, Flik Flak, Swatch, Calvin Klein, Hamilton, Mido and Tissot achieved ‘impressive’ growth rates in the second half of 2017.
The Electronic Systems segment generated net sales of CHF267 million (€230 million), corresponding to a growth of +2.7%. “Sales are very sensitive in relation to the strength of the Swiss Franc versus US Dollar and Japanese Yen,” said Swatch Group.
Positive outlook for 2018
Swatch Group said: “The very strong performance in the second half of the year once again confirms the validity of the Swatch Group strategy: to retain personnel even in difficult times, to continue investment in innovation and marketing and to view inventory not as a risk, but as an opportunity. These elements led to massive gains in market share in the second half of the year and will develop further positive impacts in 2018.
“Swatch Group will continue to generate very dynamic growth in local currency in 2018. The very good start in January confirms sustained consumption in most regions and countries, not only in the prestige and luxury sector, but also in the basic price segments.”