Swatch Sales Up 17.6% to $5.4 Billion

The Swatch Group announced 2007 gross sales up 17.6 percent over 2006, a record total of CHF 5.941 billion ($5.4 billion). The company noted strong growth in all group divisions and maintains and ongoing optimistic outlook for 2008.

Sales in the watches and jewelry category, which made up the bulk of the company’s profit, grew 20.4 percent to CHF 4.71 billion ($4.28 billion), while production sales increased 20.9 percent to CHF 1.684 billion ($1.530 billion).

The watches and jewelry sales increase was a result of the firm’s continued selective expansion of retail activities, which has given Swatch’s brands strong visual presence in important retail locations. Asia, including the Middle East, posted notable double-digit sales growth, with Europe, America and Oceania also recording solid growth rates.

In addition, Swatch noted that, “The difficult currency environment in the second half of the year, the continuing rise in the price of gold, platinum, diamonds and precious stones, as well as higher prices for almost all other raw materials, put a squeeze on margins.”

Despite this, the company said that it anticipates further growth in all areas, as well as double-digit growth in January 2008.