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Swatch Group upbeat about 2024 after annual sales and profit rise

January 23, 2024
in Business
Swatch Group upbeat about 2024 after annual sales and profit rise
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Swatch Group upbeat about 2024 after annual sales and profit rise
© Reuters. People walk past a shop of Swiss watch manufacturer Swatch in Bern, Switzerland March 18, 2021. REUTERS/Arnd Wiegmann

ZURICH (Reuters) -Swatch Group reported a 5.2% increase in annual sales, the world’s biggest watchmaker said on Tuesday, adding it saw “excellent growth prospects” for 2024.

The maker of Omega, Tissot and Longines watches as well its eponymous mass-market plastic watches said its sales increased to 7.89 billion Swiss francs ($9.11 billion), a rise of 5.2% in franc terms and a 12.6% increase when measured at constant exchange rates.

During the fourth quarter, Swatch’s sales growth decelerated to 8%, said the Swiss company, whose sales figures were reduced by the big appreciation in the franc during 2023.

The annual sales increase was in line with a forecast from Zuercher Kantonalbank, which expected sales to go up 12.7% to 7.9 billion francs.

Net profit increased by 8.1% to 890 million francs, as the company – known for its bullish outlooks – gave an optimistic view for the year ahead.

“The Group anticipates excellent opportunities for further growth in local currencies in 2024,” it said in a statement.

“The jewelry brand Harry Winston will surpass one billion in turnover in 2024. The brands Swatch and Tissot, as well as Longines, will continue to develop strongly in the lower and medium price segments.”

The company said it also expected additional demand in China, a big driver of luxury demand in recent years, citing its strong brands in the lower and medium priced segments.

($1=0.8657 Swiss francs)

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Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/swatch-group-upbeat-about-2024-after-annual-sales-and-profit-rise-3280241

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