×
401
Fashion Jobs
GAP
Assistant Visual Manager - Bluewater
Permanent · Kent
MICHAEL KORS (UK) LIMITED
Ecommerce Operations Manager, Emea
Permanent · London
SHISEIDO
Bareminerals Account Manager - Debenhams, Bury (37.5)
Permanent · BURY SAINT EDMUNDS
SHISEIDO
Bareminerals Business Manager - Debenhams, Liverpool (37.5)
Permanent · Liverpool
SHISEIDO
Bareminerals Account Manager - Debenhams, Ipswich (37.5)
Permanent · Ipswich
SHISEIDO
Shisiedo Group Fragrance Account Manager - John Lewis, Brent Cross (22.5)
Permanent · London
THE KOOPLES
Concession Manager - Fenwick Newcastle
Permanent · NEWCASTLE UPON TYNE
UNDERGROUND
PR Showroom And Social Media Internship
Internship · LONDON
UNDERGROUND
Music Content Internship
Internship · LONDON
FOREO
Senior Creative PR Storyteller
Permanent · London
SUITEX INTERNATIONAL MILANO SRL
Store Manager Luxury
Permanent · LONDON
YUGEN
Social Media & Creative Content Intern
Internship · LONDON
GAP
Sales Associate - Canary Wharf (12 Hours)
Permanent · LONDON
GAP
Senior Sales Associate - o2
Permanent · LONDON
GAP
Sales Associate - Canary Wharf (32 Hours)
Permanent · London
GAP
Sales Associate - Edinburgh 2 (12 Hours)
Permanent · Edinburgh
GAP
Operations Associate - Cheshire Oaks (16 Hours)
Permanent · Birkenhead
GAP
Sales Associate - Stratford
Permanent · London
GAP
Floor Manager - Gap k/b Wandsworth
Permanent · London
GAP
Floor Manager - Tunbridge Wells
Permanent · Royal Tunbridge Wells
GAP
Assistant Manager - Hatfield
Permanent · Hatfield
GAP
Sales Associate - Gretna (12 Hours)
Permanent · Gretna Green

Hit by strong franc, Swatch profits tick lower

By
AFP
Published
Feb 3, 2016
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Swatch on Wednesday posted a 21-percent-drop in its annual net profit, as the world's biggest watch group was slammed by a strong Swiss franc and a struggling timepiece sector.

Last year, the Swiss watchmaker saw its net profit plummet to 1.1 billion Swiss francs ($1.08 billion, 990 million euros), dropping by more than a fifth from 2014, when it reported its weakest annual result in five years.

Swatch


The company meanwhile said its operating profit slipped three percent to 8.4 billion Swiss francs last year, blaming especially "the ongoing unfavorable currency situation versus the still massively overvalued Swiss franc."

The value of the Swiss franc ballooned after the Swiss central bank in January 2015 suddenly stopped artificially trying to hold down its value against the euro, hitting exporters in the country hard.

Stripping out exchange rate factors, by contrast, Swatch said its operating profit dipped only 0.9 percent.

The results were largely in line with expectations of analysts polled by the AWP financial news agency, who had anticipated a net profit of 1.1 billion francs on an operating profit of 8.5 billion.

Following the announcement, Swatch saw its share price fall 1.24 percent to 334.70 Swiss francs in morning trading as the Swiss stock exchange's main SMI index inched up 0.46 percent.

Swatch, best known for its brightly coloured plastic-cased watches, meanwhile stressed that its all-important Watches and Jewelry unit had contracted just 0.8 percent in constant exchange rates -- less than the overall sector.

In 2015, Swiss watch exports shrank 3.3 percent to 21.5 billion francs, falling for the first time since 2009.

The 2015 slump was closely linked to a steep 9.1-percent fall in demand in Asia, the main market for Swiss watches, which absorbed exactly half of all the exports last year.

Exports to China have yo-yoed wildly in recent years, first raking in several years of double-digit growth before taking a hard hit following efforts to crack down on corruption in that country by banning extravagant gifts like expensive watches to public officials.

The pro-democracy Umbrella protests that brought much of key watch market Hong Kong to a standstill in 2014 also hit Swiss watchmakers hard.

Swatch, which owns 20 brands including Breguet, Omega and Blancpain, however said it expected improvements ahead.

"Despite the ongoing challenging environment in various regions," Swatch said it expected to see "a sustainable development in sales in local currency in 2016, based on worldwide ongoing very good consumption demand for Swiss watches."

The company hailed especially signs of a pick-up in China, where it said it "expects growth of well over 5% in 2016 in local currency" this year.
 

Copyright © 2020 AFP. All rights reserved. All information displayed in this section (dispatches, photographs, logos) are protected by intellectual property rights owned by Agence France-Presse. As a consequence you may not copy, reproduce, modify, transmit, publish, display or in any way commercially exploit any of the contents of this section without the prior written consent of Agence France-Presses.