Swatch H1 Sales Up 18% on Watch & Jewelry Growth

Swiss watch manufacturer the Swatch Group saw sales growth of 17.7 percent at constant exchange rates in the first half of 2008 in its Watches & Jewelry segment. Net sales for this segment totaled CHF2.217 billion ($2.023 billion), up 11 percent year over year.

Sales growth for the entire group reached 13.8 percent, including production and electronic systems, in local currency terms. Net sales for the period totaled CHF2.824 billion ($2.577 billion).

Although overall Group growth continued in the six-month period, a negative exchange effect of -5.3 percent, affected by the strength of the Swiss franc and the fall of the U.S. dollar’s value, was ‘significant’ and negatively affected sales in Swiss francs, Swatch said in a release.

The growth in sales is mainly a result of the performance of the Watches & Jewelry and Production segments, the latter of which manufacturers watch movements and components. All regions, the company noted, contributed solid results. Asia, including the Middle East, and America saw clear double-digit growth in local currencies, while Europe grew at a rate only slightly above the double-digit mark.

In the outlook for its Watches & Jewelry segment, Swatch said it will continue “to promote the worldwide expansion of its distribution structures. Constant progress in solutions to production bottlenecks with targeted investment in the production area will further support growth.”