Swatch Reports 17% Jump in Earnings For 2013
February 05, 14"After four years of strong and dynamic growth by Swatch Group, as well as the entire Swiss watch industry, continued healthy growth is expected in 2014," the firm said in a statement.
Net profit surged 20 percent to $2.13 billion.
Its results received a boost from a court-ordered compensation payment of $449 million from Tiffany & Co. resulting from a legal battle over a failed joint venture.
Swatch bought watch and diamond-jewelry maker Harry Winston for about $1 billion in March last year, thus increasing its brand names which include Omega, Longines and Tissot.
Operating income rose to $2.6 billion, easily beating analysts’ estimates.
Swatch said it had “very good” watch and jewelry sales in January.
CEO Nick Hayek last month told Bloomberg News that sales could rise by a “double-digit” percentage figure in 2014 as revenue from China picks up, boosted by mid- and low-price brands, and a possible improvement in the luxury segment.
The strength of the Swiss franc against most other currencies, and a crackdown on extravagant gift-giving in China, the largest market for Swiss watches, have created problems for the luxury watch sector. Swatch said its sales in mainland China rose by a “high single-digit” figure.
Swiss watch exports to China and Hong Kong fell 8.5 percent in the first 11 months of 2013.