Swatch Group AG warned that currency shifts will weigh on sales this year as the Swiss franc trades at an eight-year high against the dollar.
(Bloomberg) — Swatch Group AG warned that currency shifts will weigh on sales this year as the Swiss franc trades at an eight-year high against the dollar.
“The only cloud on the horizon remains the unfavorable currency environment,” the company said Thursday as it reported first-half earnings that exceeded pre-pandemic levels for the first time.
The maker of Omega and Longines watches said, however, that growth opportunities for the second half are “excellent.” Chief Executive Officer Nick Hayek reiterated that full-year revenue could reach a record.
The Swiss watch industry is highly exposed to currency shifts because producing in Switzerland entails high fixed costs in francs. Adverse foreign-exchange moves cut 242 million francs ($280 million) off of first-half sales, the company said.
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–With assistance from Andy Hoffman.
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