SWATCH GROUP: KEY FIGURES 2017
• Group net sales increased 5.8% to CHF 7,989 million at constant exchange rates, and +5.4% to CHF 7,960 million at current exchange rates.
• Sales growth of 7.3% in the Watches & Jewelry segment (excluding Production) at constant exchange rates and 6.9% at current exchange rates.
• Strong acceleration of 12.2% at current exchange rates in the second half of the year and in the 4th quarter even 14.9% in the Watches & Jewelry segment
(excluding Production).
• December recorded the second best monthly sales in the history of Swatch Group.
• Dynamic growth in all price segments, with the strongest increase in the prestige and luxury segment.
• Extraordinary performance of Harry Winston and a very strong acceleration of Omega in the second half of the year.
• The basic and middle range price segment, with Flik Flak, Swatch, Calvin Klein, Hamilton, Mido and Tissot, recorded good growth in value, in the second half of the year, as well as in volumes.
• Growth in all regions, the strongest of which was Asia / Pacific, in both wholesale and retail.
• Operating margin in the Watches & Jewelry Segment (excluding Production) increased 27.4%, from 12.8% to 15.3% of net sales, despite a negative currency impact.
• Overall operating result improved by 24.5% to CHF 1,002 million, and was even up by almost 40% in the second half of the year. Operating margin grew from 10.7% in the previous year to 12.6%.
• Net income increased 27.3% to CHF 755 million, with a net margin of 9.5% (previous year: 7.9%).
• Dividend proposal up by 11.1% to CHF 7.50 per bearer share (previous year:
CHF 6.75) and CHF 1.50 per registered share (previous year: CHF 1.35), back to the level of 2015.
• Good start into the new year in all segments. Positive outlook for 2018, with numerous new product launches and very good capacity utilization in production, which will further profit from higher volumes.
The very strong performance in the second half of the year once again confirms the validity of the Swatch Group strategy:
- to retain personnel even in difficult times
- to continue investing in innovation and marketing
- to view inventory not as a risk, but as an opportunity
These elements led to massive gains in market share in the second half of the year and will develop further positive impacts in 2018.
Group Overview
The Swatch Group, with its 20 strong brands and its own retail network, including e-commerce and omnichannel distribution, is very well set up worldwide, and generated sales of CHF 7,960 million over the course of the year (+5.4% at current and +5.8% at constant exchange rates).
The Swatch Group also adhered to its consumer-friendly and defensive pricing policy and did not adjust automatically local sales prices to the overvalued Swiss franc.
- to continue investing in innovation and marketing
- to view inventory not as a risk, but as an opportunity
These elements led to massive gains in market share in the second half of the year and will develop further positive impacts in 2018.
Group Overview
The Swatch Group, with its 20 strong brands and its own retail network, including e-commerce and omnichannel distribution, is very well set up worldwide, and generated sales of CHF 7,960 million over the course of the year (+5.4% at current and +5.8% at constant exchange rates).
The Swatch Group also adhered to its consumer-friendly and defensive pricing policy and did not adjust automatically local sales prices to the overvalued Swiss franc.
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