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Swatch Group: half-year report 2020


The Swatch Group released its financial report for the first half of 2020.

The year started well for the Group that in January recorded an operating margin of 21.4% in the Watches & Jewelry segment (without Production) and 17.3% for the entire Group.

Massive decline occurred as of February due to state-ordered Covid-19 measures imposed around the globe that impacted the Group with the closings of at times up to 80% of distribution channels worldwide (Group stores and third-party stores). Only e-commerce distribution was partially feasible. Production of watches, jewelry and components was reduced to a minimum, and short-time work was introduced for a significant number of employees. Inevitably, the Covid-19 emergency resulted in a half-year loss, a first in the history of Swatch Group.

The Group net sales were CHF 2,197 million, -43.4% to the previous year at constant exchange rates, or -46.1% at current rates.

Lower sales brought to an operating loss of CHF -327 million compared to operating profit of CHF 547 million in the previous year.

In this period, the Group achieved significant cost savings in the areas of purchasing, production, marketing, and rents while leaving unchanged the areas of research and development as well as training.

Customer demand for Group products continues to be strong, both in the prestige and luxury segment as well as in the middle and lower price segment. However, this demand could not be satisfied since the majority of distribution channels worldwide were forced to close.

The following examples of a market with full lockdown (China) show strong growth after the end of the lockdown period, first in the Group’s retail, followed by a delay in wholesale.

The bar graph above shows that the Group's retail sales declined more than 80% during the lockdown but immediately recovered after the reopening. The months of May and June show an increase of more than 60% over the the strong previous year.

Domestic wholesale experienced a decline of over 80% during lockdown and a delayed recovery compared to retail sales. Nonetheless, June 2020 performed better than June 2019.

The Group’s management is convinced that the sales and profit situation will improve quickly in the coming months, parallel to the further easing of Covid-19 measures in the countries. The positive outlook is strengthened by the new products that will be launched in the second half of the year, as well as the lower cost base. This will lead to increased production capacity in the third and fourth quarter 2020. A positive operating result is expected for the full year. swatchgroup.com

COMMENTS

Name

A. Lange & Sohne,91,AkriviA,8,alarm,9,Alpina,10,Andersmann,2,Andreas Strehler,5,Angelus,4,annual calendar,31,Anonimo,14,Anthony de Haas,1,Antiquorum,2,Antoine Martin,2,Antoine Preziuso,1,Apple,1,Apple Watch,1,Aquadive,2,Armin Strom,42,Arnold and Son,21,Astarwatch,1,Atelier de Chronometrie,1,Ateliers deMonaco,2,Atmos,1,Auctions,62,Audemars Piguet,47,Autodromo,1,automaton,1,Bamford,1,Baselworld,7,BaselWorld 2013,50,BaselWorld 2014,53,Baselworld 2015,69,Baselworld 2016,27,Baselworld 2017,64,Baselworld 2018,75,Baselworld 2019,41,Baselworld 2020,2,Baume,2,Baume et Mercier,27,Bell & Ross,27,Bernard Lederer Universe,1,bespoke,1,Blancpain,55,BLU,1,blue dial,3,Bonhams,2,Bovet,8,Brands histories,1,Breguet,76,Breitling,49,Bremont,1,Bremont Watch Company,4,Breva,2,bronze,18,Bücherei,1,Bulgari,57,Bulova,1,Burberry,1,C3H5N3O9,1,carbon,1,carillon,1,Carl F. Bucherer,2,Carl Suchy,1,Carrera,4,Cartier,41,ceramic,5,Certina,5,Chanel,2,Chaumet,3,chiming hour,4,Chopard,28,Christie's,4,Christophe Claret,5,Christopher Ward,8,chronograph,428,chronometer,29,Chronoswiss,3,Citizen,3,co-axial,1,column-wheel,7,complete calendar,11,complications,77,concept watch,5,Concord,1,constant-force,29,Corum,16,CSEM,1,Cyrus,10,Czapek,5,Davosa,1,Daytona,3,De Bethune,18,de Grisogono,3,dead seconds,16,detent escapement,2,DeWitt,9,diving,3,diving watches,216,double regulator,2,Doxa,7,drei,1,dress watches,334,dual time,78,Ebel,1,Eberhard,27,Edox,1,El Primero,29,Emile Chouriet,1,Emmanuel Bouchet,1,enamel dial,8,enamelling,14,Equation of time,7,ETA,1,Eterna,18,exhibitions,1,F.P.Journe,29,Faberge,2,Favre-Leuba,1,feature article,39,features,75,Ferdinand Berthoud,3,flyback,38,Fondation de la Haute Horlogerie,1,Fortis,4,Franck Muller,6,Frederique Constant,11,Gallet,1,Geneva Watchmaking Grand Prix,8,Georg Jensen,1,George Daniels,3,Gerald Charles,1,Gerald Genta,3,Girard-Perregaux,40,Glashuette,16,Glashuette Original,42,Glashütte,30,Glashütte Original,72,Glycine,4,GMT,70,GoS,1,GoS Watches,1,GPHG,8,GPHG2019,1,Graham,5,Grand Feu,3,Grand Prix d’Horlogerie de Geneve,12,Grand Seiko,18,Grande Complication,21,Grande Sonnerie,5,Greubel Forsey,26,Gronefeld,7,Grönefeld,7,Grossmann,3,guilloché,2,H. Moser and Cie,27,H20 Watch,1,Habring,8,Habring2,9,Hajime Asaoka,1,Hallmark of Geneva,2,Hamilton,23,hands-on,39,Harry Winston,11,Hautlence,5,Hermes,19,high jewellery,1,Hublot,17,Hybris Artistica,1,Hydro Mechanical Horologists,7,HYT Watches,13,Icon,1,In pictures,7,independent watchmaker,10,industry news,155,interview,3,Interviews,3,IWC,103,Jaeger-LeCoultre,91,Jaquet Droz,44,Jean-Francois Mojon,1,Jean-Marc Pontroué,1,JeanRichard,3,jumping hours,26,Junghans,8,Kaj Korpela,1,Kari Voutilainen,6,Kenissi,1,Korpela,1,Krayon,2,Kudoke,2,Ladies watches,119,Lang & Heyne,2,Lange,27,large date,1,Laurent Ferrier,18,Laureus,1,Le Garde Temps,1,Leica,1,Lemania,1,Leroy,3,Linde Werdelin,2,Longines,53,Louis Erard,1,Louis Moinet,5,luxury steel watch,6,LVMH,7,LVMH 2020,6,Maîtres du Temps,1,Manufacture Contemporaine du Temps,3,Manufacture Royale,3,marine chronometer,1,Maurice de Mauriac,1,Maurice Lacroix,5,MB&F,32,MCT,1,MeisterSinger,45,meteorite,1,metiers d'art,1,Mido,11,military watches,12,Minerva,1,Ming,1,Minute Repeater,41,monopusher chronograph,1,Montblanc,50,moon phases,99,Moritz Grossmann,25,Moser,26,Muhle,4,Mühle-Glashütte,3,mystery watches,2,Nautilus,5,New Britain Corp,1,new watches,2263,Nomos,38,Norqain,7,Ochs und Junior,4,Officine Panerai,76,Omega,113,Only Watch,5,Only Watch 2015,4,Only Watch 2017,2,Only Watch 2019,3,Oris,31,paillonne,1,Panerai,76,Parmigiani,5,Parmigiani Fleurier,22,Pascal Coyon,1,Patek,23,Patek Philippe,87,Pedrozo & Piriz,1,perpetual calendar,96,Perrelet,7,Phenomen,1,Philippe Dufour,1,Phillips,6,Piaget,21,Pierre DeRoche,1,pilot watch,70,Pita,1,planetarium,1,platinum,2,pocket watch,3,pocket watches,2,Poincon de Geneve,2,Porsche Design,15,Pre-SIHH 2016: Cartier - Clé de Cartier Automatic Skeleton,1,pulsometer,5,Purnell,1,quartz,4,Rado,11,Ralf Tech,2,Ralph Lauren,2,rattrapante,17,Raul Pages,1,Raymond Weil,1,rectangular watches,7,reddot award,1,regulator,16,remontoire,4,Remy Cools,1,Reservoir,1,resonance,11,Ressence,7,retrograde,5,Revelation,1,Reverso,16,review,38,Richard Mille,69,Richemont,4,Richmond,1,Roger Dubuis,11,Roger Smith,1,Roger W. Smith,1,Rolex,42,Romain Gauthier,9,Romain Jerome,1,Royal Oak,18,Rudis Sylva,1,Seiko,27,SevenFriday,2,SIHH,3,SIHH 2012,4,SIHH 2013,25,SIHH 2014,36,SIHH 2015,43,SIHH 2016,44,SIHH 2017,40,SIHH 2018,43,SIHH 2019,53,Singer,2,Singer Reimagined,3,single hand,8,single-hand watches,10,Sinn,13,skeleton,17,smartwatch,7,solar energy,1,Sotheby's,5,Speake-Marin,4,Speedmaster,18,split seconds,12,sport watches,552,Spring Drive,2,squelette,41,steampunk,1,Steinhart,1,striking time,11,SuisseMecanica,1,sunrise,2,sunset,2,Swatch,3,Swatch Group,14,table clocks,3,Tag Heuer,100,technical insight,2,terra Cielo Mare,1,Tiffany,16,Tissot,4,titanium,2,top news,82,Torsti Laine,1,tourbillon,250,Trilobe,1,Tudor,19,Tulloch,1,Tutima,2,ultra thin,26,Ulysse Nardin,31,Union Glashutte,5,Urban Jurgensen,29,Urwerk,17,Vacheron Constantin,71,Van Cleef & Arpels,7,Vauchier Fleurier,1,Vianney Halter,3,video,1,vintage watches,1,Vulcain,9,wandering hours,1,Watches & Wonders,31,Watches & Wonders 2020,19,Watches&Wonders,1,worldtime,37,Zenith,78,Zodiac,7,
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Time and Watches | The watch blog: Swatch Group: half-year report 2020
Swatch Group: half-year report 2020
The Swatch Group released its financial report for the first half of 2020.
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Time and Watches | The watch blog
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