Swatch profit fell by 47% in 2016

Swiss watch and jewelry maker Swatch Group Thursday reported that its fiscal 2016 net income declined 47% to 593 million Swiss francs from 1.119 billion francs in the year-ago period.

Swiss watchmakers have been grappling with eroding sales in their biggest markets, Hong Kong and the United States, and tourist shoppers avoiding Europe for fear of extremist attacks, but recently mainland China sales turned the corner.

Operating result for the year fell 44.5 percent to 805 million francs from 1.451 billion francs last year. The group's operating profit margin deteriorated to 10.7%, from 17.2% last year.

Sales at constant currencies slid 10.8% to 7.55 billion francs from 8.45 billion francs last year, mirroring a 10% decline in Swiss watch exports in 2016.

"Based on the positive development of the last three months, healthy growth is expected for the year 2017," the company, based in Biel in western Switzerland, said in a statement on Thursday.

Looking ahead, Swatch Group said that based on the positive development of the last three months, it expects healthy growth for the year 2017. The company noted that the year 2017 will be marked by many new product launches by its brands.