Watch giant Swatch has reported “very good growth” in revenues, marking an end to the Swiss watch industry’s financial struggles.
Following a 47 per cent drop in profits last year, alongside an 11 per cent drop in sales, Swatch recorded a sharp upturn in its fortunes over the last three months.
The brand, which also owns Omega and Blancpain, saw its worst year since last year’s financial crash, with exports down 10 per cent. It said this was due to poor sales in the US and China, both key markets for the industry.
This was offset by strong sales in local currency in the UK, seeing double digit growth. This was driven by the sharp fall in the value of the pound, seeing overseas buyers take advantage by purchasing luxury watches.
The recent upsurge in sales, aided by normalisation in the Chinese market and further double-digit growth in the Middle East, has prevented the watch retailer making dramatic cuts to production.
“The environment is improving but it is still going to be a choppy year,” Kepler Cheuvreux analyst Jon Cox said.
“If you look at some of the company’s past outlook statements, its comments for ‘healthy local currency growth’ look actually quite cautious.”