In preparation of its semi-annual results publication, Swiss Swatch issued a profit alert as it expects profit to drop more than 50 %.
Positive evolution in China
For the first half of this year, the Swatch Group forecasts a 12 % net turnover drop because of lower sales in important markets like Europe. As a result, profit will most likely drop 50 to 60 % as well.
There has been a positive evolution in China, but there have been turnover drops in both France and its home territory, Switzerland, over the course of the first 6 months of 2015. Swatch also points to investments (in staff, new products and marketing) as a reason why profits have plummeted.
The Swatch Group not only owns the Swatch brand, but also owns several more expensive brands like Omega, Blancpain and Longines.
