By Katie Reid ZURICH (Reuters) - Swatch Group (UHR.VX), the world's largest watchmaker by sales, posted a forecast-beating full-year profit and confirmed its upbeat outlook for 2010, easing worries a flagging economic recovery may hit demand.
Speedmaster Professional Moonwatch Apollo 11 from Omega |
Net profit fell 9 percent to 763 million Swiss francs ($710 million), ahead of the average estimate of 698 million francs in a Reuters poll. Swatch Group expects demand for its timepieces to tick higher this year thanks partly to key brand Omega's role as the official timekeeper at this year's Winter Olympics in Vancouver. The impressive profit number adds to growing signs the watch industry may be emerging from its most severe slump in demand in decades and comes after a flurry of positive comments from other luxury goods makers such as Hermes (HRMS.PA), LVMH (LVMH.PA) and Burberry (BRBY.L). "The main reasons for this positive outlook are the excellent start in 2010, increasing order entries as well as the improving economic environment and market confidence worldwide," Swatch Group said in a statement. The group behind top-end watch brands such as Blancpain and Breguet said last week it is aiming for a record year in 2010 as demand for its timepieces rebounded in recent months. BEATING EXPECTATIONS "The 2009 figures are clearly ahead of expectations and we have to increase our EPS estimates by roughly 10 percent," Vontobel analyst Rene Weber said, adding the only slightly negative surprise was the cut in the dividend to 4.00 francs per bearer share from 4.25 francs a year ago. One Zurich-based trader said the results were likely to boost shares in the group, which have come under pressure recently as investors have sought to lock in profit on the stock after a recent rally. Swatch Group's operating margin dropped to 17.6 percent from the 21.2 percent posted in the year ago period, but profitability picked up in the second half and the full-year figure beat expectations. Stronger sales are seen boosting profitability this year. Swiss rival Richemont (CFR.VX) last month posted forecast-beating sales over the Christmas period thanks to booming sales in the Asia-Pacific region, while independent watchmakers Girard-Perregaux and Parmigiani Fleurier expect the wealthy to splash out on pricey wares this year. (Editing by Sharon Lindores) ($1=1.074 Swiss Franc) |
Shares in Swiss luxury goods group Richemont and watchmaker Swatch Group rose over 2 percent, outperforming the sector, after Deutsche Bank hiked its price targets for the two groups. 
Shares in Swatch Group, the world's largest watchmaker, rise 3.7 percent after the chairman of China-focused luxury watch retailer Xinyu Hengdeli was quoted as saying revenue in the first week of October was likely to have risen by more than 50 percent. 
Switzerland's competition watchdog has launched an investigation against Swatch Group unit ETA Manufacture Horlogere Suisse SA for potential abuse of a dominant market position. 
LVMH rose 6.7 percent to top the CAC-40 .FCHI gainers list on the back of a jump in Swatch shares which rise on better-than-expected results, and market talk of a reorganisation of the French purveyor of luxury products. 
Swatch Group, the world's largest watchmaker, has seen sales fall 10-20 percent for luxury brands like Breguet and Blancpain, Chief Executive Nick Hayek was quoted as saying. 
Tthe Piazza San Marco, Venice hosted a showing of contemporary artwork, organised by Swatch, its partner for promoting art. This initiative was accompanied by the launch of the CreArt line, produced in collaboration with Billy the Artist, Ted Scapa, Matthew Langille and Grems. 
The world's biggest watchmaker Swatch Group is expecting sales to improve in the second half of this year after a difficult start to the year, group's CEO Nick Hayek said in remarks published Sunday 12 July. 
Swatch Group, the world's largest watchmaker, has seen demand for its pricier brands drop by around 10 percent so far this year. 
Swatch Group's brand Swatch will be headed by Arlette-Elsa Emch who is taking over from Nicolas Hayek, allowing him to concentrate on the Breguet marque and other projects, a spokeswoman for the group said. 
Against the backdrop of the tradeshow Baselworld, which will end on April 2, the global leader in horology has announced the purchase of its South African distributor Swiss Precision Ltd. The exact cost of the transaction is yet to be made public. 
Swatch Group, the world's largest watchmaker, said it expects demand to pick up in the second half of the year after posting a 17 percent drop in 2008 full-year net profit on Thursday March 12. 
Swatch Group, the world's largest watchmaker, expects 2009 sales to rise modestly as it anticipates a pick up in consumer spending in the second half of the year after a challenging first half. Gross sales rose 4.3 percent to 6. 
Swatch Group (UHR.VX), the world's largest watchmaker, sees sales picking up in the second half of 2009 after dipping in the first half, its chairman said in an interview for the weekend edition of Swiss paper Finanz und Wirtschaft. 
Swatch Group (UHR.VX), the world's largest watchmaker, is expecting slower growth next year, the group's chairman told Swiss weekly newspaper Handelszeitung. 
Swiss competition authorities have opened a preliminary investigation into possible market abuse by Swatch's ETA unit, which makes watch components. 
Swatch Group , the world's largest watchmaker, is still optimistic for growth in all its divisions in 2009, despite the economic slowdown, its chairman Nicholas Hayek was quoted as saying on Monday. 
Nicolas Hayek, chairman of Swiss watchmaker Swatch Group , says he has personally lost about 3-4 billion Swiss francs on paper as a result of the financial crisis and is "furious" but not worried. 
Swiss watchmaker Swatch Group is still confident about growth in the second half of the year despite the global economic slowdown, the group's chairman Nicolas Hayek was quoted as saying on Tuesday, September 23th. 
Swatch Group posted a 9 percent fall in first-half net profit on Friday as the weak dollar and a loss on investments weighed, but gave a confident outlook due to demand in emerging markets. 
Nicolas Hayek, chairman of the world's largest watch-maker Swatch told a newspaper on Monday, March 31th that he was considering taking the group private. 
Swatch Group, the world's biggest watchmaker, reported 2007 net income Friday March 14th of 1.015 billion Swiss francs (644.2 million euros, 1.0 billion dollars), up 22.3 percent from the previous year. 
