Swatch Group has issued a significant warning about its business results, forecasting for the first six months of 2016 an expected decline in EBIT and net income of between 50 and 60%.
The Swiss group attributed the situation to the marked decline of its net consolidated revenue for the period, in the order of 12%. This was in turn due to decreasing sales in major markets such as Hong Kong and partly also Europe, notably France and Switzerland.
On the other hand, Swatch reported that business in mainland China is expanding.
The group also stated that, despite “several cancellations of third-party orders,” it does not intend to cut jobs. Swatch also expressed its willingness to continue to invest in new products and marketing, while implementing a defensive price-increase policy.
The group’s full results for the first six months of 2016 will be published on 21st July. Swatch Group owns brands such as Omega, Longines, Blancpain, Harry Winston etc.