Swatch Caps Tough Year for Swiss Watchmakers With Plunge in Profit -- Update
02 Februar 2017 - 10:09AM
Dow Jones News
By Brian Blackstone
ZURICH-- Swatch Group on Thursday reported a plunge in profit
for 2016 and slashed its dividend, underscoring how shaky consumer
confidence around the world and weakness in important markets such
as Hong Kong have taken their toll on the Swiss watch industry.
The company, known for its inexpensive plastic watches but also
owner of luxury brands including Omega, Blancpain and Breguet, did
however offer a brighter outlook for the year ahead saying its
performance in recent months had improved.
Switzerland's luxury watchmakers endured a tough 2016 as exports
plunged in part because of weaker demand from Asia and concerns
about terrorism reduced tourism to Europe. However, analysts have
flagged a more stable year in 2017 partly thanks to better economic
growth.
Swatch's full-year figures reflected the troubles of 2016, with
net profit tumbling 47% to 593 million Swiss francs ($597.1
million) on revenue down 11% to 7.55 billion francs. Swatch cut its
dividend to 6.75 francs a share from 7.50 francs in 2015.
Shares in the company fell 3% in early trading.
Last year "was not a winning year for Swatch on all the
numerical metrics," said analysts at Bernstein, noting that Swatch
undershot the earnings-per-share consensus by about 12%.
Still, the company forecasts "healthy growth" for 2017 based on
a positive end to last year.
"The months of November, December and January showed,
particularly in mainland China, very good growth in the watches and
jewelry segment, with a substantial improvement in operating
margin," Swatch said.
Write to Brian Blackstone at brian.blackstone@wsj.com
(END) Dow Jones Newswires
February 02, 2017 03:54 ET (08:54 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Swatch (PK) (USOTC:SWGAY)
Historical Stock Chart
Von Mai 2024 bis Jun 2024
Swatch (PK) (USOTC:SWGAY)
Historical Stock Chart
Von Jun 2023 bis Jun 2024