Swatch Group Stories Gross sales Up For 2022 At Appropriate Ranges

Following a few years drastically impacted by the COVID-19 pandemic, the posh {industry} typically and the watch {industry}, specifically, have been on the rise once more for the reason that finish of 2021. In response to consulting firm Bain & Co, gross sales of luxurious items are anticipated to develop by over 20% in 2022 and the Federation of the Swiss Watch Trade has simply reported document exports of Swiss watches for the earlier yr. It’s now time for the Swatch Group, one of many most important actors within the {industry}, to launch its key figures for 2022. As anticipated, gross sales are general up, mixed with a snug revenue. Nonetheless, some figures ought to be nuanced. 

Total, the Swatch Group – which contains manufacturers equivalent to Omega, Longines, Swatch, Tissot, Hamilton, Blancpain, Breguet and extra – has recorded internet gross sales of seven,499 million Swiss francs, a rise of 4.6% in comparison with the earlier yr – which needs to be in comparison with the numbers of the FHS, reporting exports of Swiss watches up by 11.4% over the course of 2022. As such, Swatch Group gross sales aren’t but again to pre-pandemic ranges, with 2019 gross sales at 8,243 million Swiss francs.

The Swatch Group studies gross sales progress of 25% in native currencies in all areas (principally US and Europe), aside from China. Because of the zero-Covid insurance policies and consequent lockdowns, this resulted in gross sales shortfalls of over CHF 700 million, or near 10% of the group’s gross sales. Nonetheless, your complete {industry} is affected by this example, with the FHS reporting exports down by 13.6% in China in 2022, the one nation on the planet the place exports are down (incl. Hong Kong).

If gross sales are not so good as among the different actors within the {industry}, different essential indicators are optimistic, such because the working revenue and the online revenue – CHF 1,158 million and CHF 823 million respectively – each exhibiting enchancment, each in internet numbers and relative to the gross sales. The group studies a decrease working money movement (CHF 723 million vs. CHF 1,298 million in 2021), defined by security measures to extend shares. Contemplating the scarcity of elements confronted by your complete {industry}, in addition to “potential power shortages and potential supply bottlenecks,” the Swatch Group has determined to extend its security inventories (up by CHF 483 million) the place possible. The inventories reported within the consolidated steadiness sheet (masking completed items, uncooked supplies, work in progress, and semi-finished items) account for nearly a yr of gross sales at CHF 6,873 million. This has been a constant technique of the group previously years and may assist Swatch manufacturers to cowl the returning demand anticipated in China in early 2023.

As a facet observe, the Group signifies that “the MoonSwatch is a best-seller, with over 1,000,000 watches offered (…) with ongoing excessive demand, together with in January.” (this accounts for about CHF 250 million in gross sales at retail value) Lastly, the Swatch Group anticipates a document yr in 2023, with progress in all areas and segments. January 2023 gross sales in Mainland China have been robust (which will be defined by purchases made for the Lunar 12 months).

For extra particulars, please go to www.swatchgroup.com.