Swiss watch giant Swatch announced a 5.8 percent decrease in net profit for the first half of the year, falling short of analyst expectations. Despite this, the company remains confident about a profit rebound in the second half, driven by robust sales momentum across all price segments.
First Half Performance
Swatch reported a net profit of 16 million Swiss francs ($19.8 million) for the January-to-June period, a 5.8 percent decline from the previous year. Sales, however, increased by two percent to 3.1 billion francs, with an 8.5 percent rise when excluding exchange rate fluctuations.
Analyst Expectations
Analysts surveyed by the Swiss news agency AWP had predicted a profit of 95 million francs on sales of three billion francs, highlighting the shortfall in Swatch's first-half performance.
Second Half Outlook
The company expressed confidence in a second-half recovery, citing the strong acceleration in sales observed in May, June, and July. This momentum is expected to lead to better utilization of production capacity and a significant improvement in profitability.
