Swatch May See 2013 Sales of $9.4 Billion, Says CEO Hayek

(IDEX Online News) –Swatch Group Chief Executive Nick Hayek says the firm may achieve sales of 9 billion Swiss francs ($9.36 billion) this year, boosted by the acquisition earlier this year of the Harry Winston retail jewelry unit. He also said that the vital Chinese market recovered last month.

"The first half of the year was certainly much more difficult than last year. But I see very good growth opportunities for the Swiss watch industry for the second half of the year," he told the Swiss NZZ am Sonntag newspaper.

Hayek said sales of the priciest products had taken the biggest blow in China in the first five months of this year, but Swatch had nonetheless recorded double-digit growth for its brands in the high, medium and lowest price categories. "The situation in the luxury market in China improved in June," he added.

Switzerland's watch industry has been bashed by a decline in demand in China this year as a result of a slowing economy and taxes aimed at discouraging lavish gifts, especially high-end watches, as part of a government anti-corruption drive.

Swatch brands, including Tissot, Longines and Omega, have taken less of a hit than goods from luxury goods groups, such as Richemont, however.

Meanwhile, European consumer spending has been battered as a result of government austerity programs in many countries.

Hayek said he hoped the Harry Winston business would "soon" be able to achieve sales of 1 billion francs ($1 billion) under Swatch leadership, compared to the $430 million it turned over last year.