China pushes Swatch’s results in first half 2017

Swatch Group on Friday painted a brighter outlook for rest of the year as the world's largest watchmaker said conditions for Swiss timepieces in China and Europe were improving.

The swiss watchmaker said it expected "very positive growth in local currency" for the rest of 2017 after net profit rose 7.2% in the first six months of the year.

Net profit attributable to shareholders rose to 269 million Swiss francs ($282.8 million) from 251 million a year earlier, short of the average estimate for 285 million in a Reuters poll of eight analysts.

The chinese market recorded "significant growth", one of its most important markets, while Hong Kong sales had stabilised after a long decline.

There was also improvement in Europe, a market hit last year by extremist attacks which deterred many visitors from destinations such as Paris.

"The Swatch Group anticipates very positive growth in local currency in the second half of the year," Swatch said in a statement.

"In addition to its already strong own retail business, wholesale should also develop positively, due to the gradual dissolution of uncertainty among individual distributors."

Total Swiss watch exports rose by 5.3 per cent in June while half-year shipments were up 0.1 per cent, Swiss customs office data showed on Thursday.

Swatch said sales of watches and jewellery had been "very positive" in the first half, despite the highly valued Swiss franc taking a bite out of the figures.

Sales fell 0.3 per cent to 3.71 billion francs versus the 3.73 billion forecast by analysts. With currency effects removed sales rose 1.2 per cent.