Swatch: profit warning on first half 2016

9 years ago - Published in Finance, Fundamental Analysis

Concern in Biel, headquarters of the Swiss giant Swatch Group. The leadership team has expressed all its tension on the first half results for which foresees a possible profit decline of up to 60% and 12% of turnover. Europe and Hong Kong, the main markets for Swatch, have great difficulties on the sales so that, between January and the end of June, the decline of turnover by 12% and that's why the profit could fall by more than half.

CEO, Nick Hayek, points out that, despite the difficulties, the employees will not be sacrificed. "Better to reduce the margins that cut staff" confirmed the boss of Swatch.

The news came a few hours after another attack in France, in Nice, which could further burden on the entire sector of the luxury for the likely slowdown in tourist activity that could follow. The title has collapsed on the Zurich Stock Exchange: this morning the title shows a decline of more than 11 percentage points