Swatch Group Sales Decline in 2009

Sales by Swatch totaled CHF 5.42 billion ($5.1 billion) in 2009, a 6.3 percent decline at constant exchange rates compared to 2008, which was a record year for the company. Watch and jewelry sales of CHF 4.43 billion ($4.14 billion) decreased 5.5 percent, yet allowed the group to increase market share.

Net profit fell 8.9 percent to CHF 763 million ($714 million), representing 14.8 percent of net sales, the same as in 2008.

Despite the decline in watch sales, Swatch outperformed Swiss Watch Federation export sales, which declined by 22.3 percent in 2009. This allowed the Swatch Group to gain market share in practically all price segments and markets, the watch maker stated.

As the global economic situation is improving, Swatch is seeing a turnaround in watch sales. In December, sales by the watch segment leaped 28.8 percent year-over-year. Continued good sales in January propelled the month to become the second-best January in the history of the Group.

In addition to watches and jewelry, the Group manufactures watch mechanisms and electronic timing systems.

Swatch expects growth in sales in 2010 based on its January performance and the exposure it will receive at the Winter Olympics 2010 in Vancouver, where its Omega brand will serve as the official timekeeper.