PARIS — Sales have picked up at Swatch Group, the group reported Monday, citing a major acceleration within the second quarter due to the reopening of key markets following months of pandemic lockdown measures.
The group, which owns Longines, Blancpain, Harry Winston, Tissot and Omega, amongst different labels, is concentrating on sturdy development within the second half of the 12 months, when it goals to rise above 2019 ranges.
“The easing of COVID-19 restrictions announced by European and Asian countries, as well as the resumption of tourism in many regions, will provide a further boost in sales,” predicted the group in an announcement.
Sales for the primary half got here to three.39 billion Swiss francs, or $3.7 billion, up 55 p.c in comparison with the earlier 12 months at fixed change charges. That determine was 12.3 p.c decrease than the primary half in 2019.
Swatch mentioned the gross sales efficiency was led by China, Macau, the U.S. and Russia, with enterprise from its personal retail shops outpacing the group common, whereas e-commerce continued to develop. Travel-related enterprise continued to undergo, nonetheless, with gross sales in airports and journey locations remaining considerably under 2019 ranges, the group mentioned.
The group closed 135 shops over the interval, decreasing workers by 2.7 p.c. It additionally opened 36 new shops.
Net revenue got here to 270 million Swiss francs in comparison with final 12 months’s working lack of 327 million Swiss francs. The firm flagged enchancment in its working margin over the primary half, which stood at 17 p.c — above the 2019 determine of 19.2 p.c.
In March, executives at Swatch flagged a powerful restoration within the U.S. whereas the state of affairs in Europe remained sophisticated. They additionally famous a fast restoration in international locations now not in lockdown, particularly mainland China. Greater China was Swatch’s largest market final 12 months, accounting for 44.5 p.c of gross sales.