Swiss watch maker Swatch shares are on the up Tuesday, after the company reported a healthy profit during 2017 and is also optimistic for the year ahead. Sales in China gave a major boost to the brand, while the future looks bright too.
By 1005 BST, Swatch shares were trading 3.12% higher at CHF415.90. The Swatch stock hasn’t made much progress so far this year, at least until Tuesday’s earnings release.
Swatch sales and profit details
The Swatch results showed some healthy numbers. Total Swatch group net sales rose 5.8% to CHF7 989 million, while sales growth in the watches and jewellery sector, rose 7.3%.
Net profit was up 27.3% at CHF755 million across 2017, from CHF593 million in 2016. And Swatch announced a dividend of CHF7.5 per share, an 11.1% increase from 2016.
Swatch also stated that product sales grew in all regions it operates in. However, it noted Asia Pacific as the strongest area for the watch maker in 2017.
By watch type, Swatch reported that the biggest sales growth was recorded in its ’prestige and luxury’ brand watches. The Harry Winston watches had an “extraordinary performance”, Swatch said, while the Omega range proved popular in the second half of 2017.
Swatch added that sales volumes of its mid-range brand watches - Flik Flak, Swatch, Calvin Klein, Hamilton, Mido and Tissot – all grew, particularly in the second half of the year.
Good start to 2018
Following its upbeat 2017 results, Swatch was also positive on what 2018 will hold for the Swiss watch maker. After making a good start to 2018 so far, Swatch said it “anticipates further very positive growth.”
“Swatch Group, with its global presence and its unique and diverse distribution channels, including online, will continue to generate very dynamic growth in local currency in 2018,” Swatch said in its earnings press release.
“The very good start in January confirms sustained consumption in most regions and countries, not only in the prestige and luxury sector, but also in the basic price segments,” it added.