Swatch 2008 Watch & Jewelry Sales CHF 4.796 Billion

Gross sales by Swatch were CHF 5.966 billion in 2008, rising a marginal 0.4 percent over 2007, despite a record negative currency impact of CHF 233 million, the Swiss watch maker reported Thursday. Net income declined to CHF 838 million from CHF 1.015 million in 2007.

Watches and jewelry total gross sales were CHF 4.796 billion, increasing 1.8 percent year-over-year, while net sales rose 1.9 percent to CHF 4.547 billion. Watches and jewelry operating profit of CHF 828 million declined 10 percent.

“In 2008, all price categories of the Watches & Jewelry segment reported higher sales in local currencies than in the very strong year 2007,” Swatch said in a release.

“A noticeable drop in demand in the last months of 2008 mainly at wholesale level reduced the momentum in most brands and markets. Even the luxury brands could not entirely escape this unfavorable trend."

Despite the crisis on the financial markets, and in order to encourage the group’s long-term growth, marketing spend was increased and retail activities were further expanded in strategic key locations.

The company said it has a cautious but not pessimistic outlook for the first months of 2009, anticipating an improvement in the second half of year.