Swiss watchmaker Swatch, which is expected to reveal its first-half 2022 results in the next two weeks, announced that the launch of its MoonSwatch has boosted sales of the Omega model.
Nick Hayek, Swatch Group CEO, said that “sales of the Speedmaster Moonwatch model, which costs around $7,000, have jumped by more than 50% at Omega retail outlets since the March launch of the MoonSwatch, which is priced at $250” .
Also, the Swatch model, MoonSwatch, has had the effect of rekindling interest in Swatch among young consumers. Swatch has also announced that it will open 25 additional points of sale around the world during the summer.
What about Swatch’s economic forecasts?
This information complements recent forecasts by ten analysts for Swatch’s first-half 2022 results. The watchmaker, who generates about 40% of its sales in China, saw a dip in its results last April with the resurgence of the pandemic in that region. This would not be a good sign for H1 results.
However, this would not have had a significant impact on Swatch’s economic situation. The latter is expected to have continued to grow in the first six months of 2022, its growth slightly higher than in the previous year, and a turnover however lower than in 2019, which amounted to 4.08 billion Swiss francs (4.1 billion euros).
Swatch is expected to achieve 3,590 million Swiss francs in net sales in S1 2022, compared with 3,392 in the same period last year. Its net profit is also expected to increase in S1 2022: 334 million Swiss francs compared to 270 the previous year.
For his part, Nick Hayek remains confident and is counting on a double-digit increase in revenues and was convinced last March that he would be able to continue the growth of 2021.
Finally, as for forecasts for the rest of the year, analysts are not so optimistic and are betting on a slowdown in Swatch’s growth. To be continued.
Featured photo : © Swatch