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Swatch Group sales grow 8.3 percent

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A new record of CHF 8 817 millionSwatch Group sales grow 8.3 percent

With its 20 brands, the worldwide leader in the watch sector grew by a further 8.3%, generating record sales of CHF 8 817 million in 2013, despite the extremely adverse currency situation. The major growth factors were the strong brands and the extensive distribution and retail network.

As a result, Watches & Jewelry generated a sales growth of over 10%; including production, this segment increased gross sales by 8.6% to CHF 8 532 million. In comparison, export of wrist watches for the entire Swiss Watch Industry increased by 1.8% to the end of November 2013. This clearly indicates the gain in market share by the Swatch Group. In production, specific capacities have been expanded and put into operation. Additional increases in capacity are either in the planning phase or already under construction.

The ongoing over-valuation of the Swiss Franc, particularly against the USD and JPY, negatively impacted Group results versus 2012. In the second half of the year, the negative effect on sales due to exchange rates was over CHF 100 million. In addition, the over-valuation continued to put pressure on prices in the Electronic Systems segment, which closed with gross sales of CHF 299 million, a decrease of 3.9% versus the previous year.

Despite this negative currency situation, the Group expects good results for 2013 at operating profit and net income level.

Based on the strong start by all brands in the first few days of January, dynamic growth is expected for the entire year 2014.