Swatch Group reported net sales growth of 8.9%, year-on-year to $ 4.3 billion (4 billion Swiss francs) for the first financial half-year ended June 30, Rapaport reports. Expenses related to the return of goods, discounts and shares increased by 4.8% to $ 186 million. The company's profit showed an increase of 6.1% to $ 818 million. In the first half of the year, some currency fluctuations were recorded, which helped to improve the Group's sales performance 1%.
This year, Swatch Group changed the structure and structure of its reporting by segments, uniting the Watch and Jewelry and Production units in the single section "Watches and Jewelry". This is due to the fact that the diversification of production, data about which are processed in the head office of the company, makes it impossible to clearly distinguish between segments. This trend strengthened in March, when the Swatch Group acquired Harry Winston Inc .; the results of the transaction will be visible in the reporting in the second half of the year.
Net sales of watches and jewelery during the reporting period increased by 9.3% on a year-on-year basis and reached $ 4.1 billion. Sales through electronic systems fell 6.3% to $ 158 million.
According to Swatch, the infrastructure of Harry Winston has been modified to best use the "huge potential that this brand has" and its organization. In the first months after the transaction, the company settled arrears, increased capital and inventory volumes. In May, Swatch invested in the purchase of the largest and cleanest diamond with a weight of 101.73 carats called Winston Legacy, paying $ 26.7 million for it.