Swatch Group sales increased by 5.4% to CHF 7.96 billion in 2017, the company reports today.
Operating margin in the Watche & Jewelery Segment (excluding production) increased from 12.8% to 15.3%, resulting in overall operating profit rising by 24.5% to CHF 1 billion and net income increasing by 27.3% to CHF 755 million.
The second half of the year was particularly strong, with sales rising by 12.2% in the six months to December 2017.
Trading during the holiday season was better still, with Swatch stating that December was the second best monthly sales return in the history of the business.
A brief financial statement does not break down sales by territory or by brand. However, the company has reported that Harry Winston had an extraordinary performance, and there was a very strong acceleration for Omega in the second half of the year.
The basic and middle range price segment, in which Swatch places Flik Flak, Swatch, Calvin Klein, Mido, Hamilton and Tissot, recorded good growth in value as well as in volumes in the second half of the year, the company states.
Swatch expects the momentum from the second half of 2017 to be maintained this year.
“The Swatch Group anticipates further very positive growth in local currencies in 2018, not only from its own distribution channels such as retail and e-commerce, but also from third-party channels. In addition, further growth will utilise the capacities of all production areas,” the statement says.
Sales for Swatch Group Limited, the wholly-owned UK subsidiary, rose to £81.32 million in 2016. Accounts for 2017 have not yet been published and the company would not provide any additional information when WatchPro requested it.