Luxury Sales Boost Swatch Profits

August 22, 2000

Luxury Sales Boost Swatch Profits

Bolstered by sales in its higher-end brands, profits during the first half of this year more than doubled for Swiss watch manufacturer Swatch Group. The company also reported an overall 20.5% sales increase, which exceeds the 17.2% increase for all Swiss watches during the same period. Stronger-than-average sales were noted in its Breguet, Blancpain, Omega, Longines and Rado brands.

In addition to its first-half results, Swatch says it plans a large investment program, which includes increasing productivity in all its factories in Switzerland and abroad and increasing funding for its retail outlets, Internet activities and training and apprenticeship programs. In addition, the firm plans to expand manufacturing at its high-end movement manufacturers, F. Piguet and Nouvelle Lemania, which experienced high demand during the past six months from Swatch group companies and orders by other brands.

- by Michael Thompson