ZURICH-- Swatch Group AG (UHR.VX), the world's largest
watchmaker, Thursday reported record full-year sales, showing that
Switzerland's watch industry has remained relatively unscathed by
global economic uncertainty.
Swatch, the owner of brands including Omega and Longines, as
well as the eponymous plastic watches, said Thursday that its 2012
gross sales rose 14% to 8.14 billion Swiss francs ($8.8
billion).
The figure exceeded analysts' forecasts of CHF8.01 billion, and
matched Chief Executive Nick Hayek's prediction of gross sales of
more than CHF8 billion for 2012.
"Management expects good results for 2012 at operating profit
and net income level, and the brands report a good start in the new
year, with healthy growth again expected in 2013," Swatch Group
said in a statement.
Swiss watch sales have remained relatively shielded from the
economic downturn afflicting other industries, with the overall
Swiss industry having reported record exports in the first 11
months of 2012. Swiss watch exports for the year to November
totalled 19.64 billion francs, up 12.6% on year, and higher than a
full-year record of 19.3 billion francs reached in 2011, according
to figures released by the Swiss Customs Office in December.
But analysts expect the market to become tougher in 2013, as
demand in Greater China, the industry's largest market, remains
fragile, and inventories continue to be high.
Swatch, based in Biel, Switzerland, is due to report its
earnings on Feb. 21.
Write to john.revill@dowjones.com
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