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Leibish & Co
Thursday, January 20, 2011
Swatch Group 2010 Sales Sets New Record
The Swatch Group reported Wednesday that sales for 2010 totaled 6.4 billion Swiss Francs ($6.6 billion), an increase at constant exchange rates of 21.8 percent over 2009 and 12.7 percent over 2008, despite capacity bottlenecks and adverse exchange rates. At constant exchange rates, the increase was 28.1 percent.
“The extraordinary strength of our brand portfolio was again reflected in an excellent performance by the Watch segment in practically all markets and price segments,” the company said in a statement. “Outlook remains optimistic in the entire year 2011 for further strong organic sales growth.”
The company’s Watches & Jewelry segment reported a 21 percent year-over-year gain at constant exchange rates, with indications that double-digit growth will continue into at least January. The company has a far reaching group of watch brands, from mass market to luxury: Breguet, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot, Omega, Tiffany & Co., Longines, Rado, Union Glashütte, Tissot, ck watch & jewelry, Balmain, Certina, Mido, Hamilton, Swatch, Flik Flak, Endura and Tourbillon.
The production segment of the company, which supplies movements and components to third-party watchmakers in Switzerland and around the world, reported an increase of 7.5 percent for the year.
The electronics segment, which supply electronic systems used in watchmaking and other industries and in the field of sports event timing, reported an 11.7 percent gain, year-over-year.
The company also it expects an improved operating margin compared to the previous year as well as higher net profit for the year, despite an unfavorable currency conditions.
The decline of the dollar and the Euro caused a three percent drop in revenue, the company said. But despite this issue, Swatch Group said it expects strong growth in 2011.
“The Swatch Group will further generate dynamic and organic sales growth in 2011 and continue investment in its distribution and the expansion of its production capacities. the company said. “Sales in January 2011 are already exhibiting a positive trend with double-digit growth in local currencies. The optimistic expectations are supported by the Group’s strategic positioning in all market segments and its geographic presence throughout the world.”
This blog is for those who are passionate about jewelry and watches and want to learn more about the industry. It's a place to find the best new products from all over the world and the latest news about the business of jewelry, watches and luxury. Readers gain a backstage pass to the glamour, fun and difficulties of the industry.
I am a freelance writer and editor who covers the luxury jewelry and watch industry for several publications, including Forbes.com the Financial Times, Hong Kong-based JewelleryNetAsiaand the Italian jewelry magazine, VO+. In addition, I have my own blog covering the jewelry and watch industry, Jewelry News Network.