Swatch Group Sales, Profits Hit By Hong Kong Protests

PARIS – Swatch Group said sales fell 2.7 percent in 2019 as ongoing protests weakened business in Hong Kong, the world’s number one market for Swiss watches, with no improvement in sight for this year. The Biel, Switzerland-based group reported net profit fell 13.7 percent and its operating result was down 11.4 percent, below market expectations. In Hong Kong, the drop in sales in the second half of 2019 was approximately 200 million Swiss francs, or $206 million at current exchange rates, Swatch Group said on Thursday. The world’s biggest watchmaker, whose brands range from affordable Swatch watches to high-end Blancpain timepieces, logged revenues of 8.24 billion Swiss francs last year, down 1.8 percent at constant exchange rates. Currency fluctuations had a negative impact of 76 million Swiss francs. Swatch Group operates more than 90 retail stores in Hong Kong, where tourism has plummeted due to more than eight months of violent anti-government protests. Excluding Hong Kong, group sales rose by 5 percent at constant exchange rates in the second half and the operating result by 6 percent, it said. “Group management expects healthy growth in 2020 in all markets in local currency, with the exception of Hong Kong,” the company said in a

Follow WWD on Twitter or become a fan on Facebook.

from WWDWWD https://ift.tt/2U8qKC1