(RTTNews) – Swatch Group AG (SWGAF, SWGNF, UHRN.SW), a Swiss manufacturer of watches and jewelry, reported Tuesday lower net profit in its first half, but higher profit attributable to shareholders amid increased net sales.
Regarding the current trading, the company reported strong sales acceleration in May and June, with sales up 13.1 percent at constant exchange rates and an operating margin of 8.6 percent.
Looking ahead to the second half of 2026, the firm projects continued growth and improved profitability.
In the first half, the company reported net result of 16 million francs, down from 17 million francs a year ago. Net income attributable to shareholders, meanwhile, grew to 9 million Swiss francs or 0.04 franc per share, higher than last year’s 3 million francs or 0.01 franc per share.
Result before income taxes fell to 52 million francs from 72 million francs last year.
The company achieved an operating profit of 52 million francs, representing an operating margin of 1.7 percent, down from 68 million francs last year.
The result reflected the impact of negative currency effects and results from the Production segment, which the company said it deliberately maintained to preserve production capacities and jobs without implementing reduced working hours compensation.
Net sales reached 3.121 billion francs, up 2.0 percent from 3.059 billion francs last year, driven by a solid momentum across all price segments. Net sales grew 8.5 percent at constant exchange rates, despite negative currency effects of approximately 200 million Swiss francs and geopolitical challenges in the Middle East.
In the second quarter, the sales were up 9.4 percent at constant exchange rates.
The Watches & Jewelry segment, excluding Production, performed strongly, with sales increasing 9.5 percent at constant exchange rates.
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