Swatch Group watch, jewelry sales up 13.8 percent
Biel, Switzerland—Net income for the Swatch Group increased 33.7 percent in 2006 to $684.7 million, compared to approximately $512.3 million in 2005, the company announced today.
The company also saw an above-average increase in operating profit, up 32.4 percent in 2006 to $802.9 million, compared to $606.5 million in 2005.
The group’s core business, watches and jewelry, saw sales increase 13.8 percent in 2006. The company—which has 19 brands worldwide, 12 of which are sold in the United States—said all brands and price ranges contributed to this growth surge. (Swatch does not break out figures by country or brand.)
Operating profits for watches and jewelry were up 17.9 percent for the reporting period, from $516.6 million in 2005 to $609 million in 2006, and operating margins pushed up from 19.1 percent in 2005 to 19.8 percent for the period under review.
While higher gold prices and the introduction of a luxury tax in China had a slightly negative effect on operating margins, Swatch said these factors were partially compensated for by price and volume increases.
The company also announced a new share-buyback program with a total value of 400 million Swiss Francs, or about $330 million.
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