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.
Swiss watch exports registered one of its shallowest falls of last year in December, yet marking a decline for the whole of 2016, figures from the Federation of the Swiss Watch Industry showed Thursday.
Watch exports declined 4.6% year-on-year in December to CHF 1.7 billion. Exports for the whole year tumbled 9.9 percent to CHF 19.4 billion. The annual decline is the worst performance since exports fell 22 percent in 2009 in the wake of the bankruptcy of Lehman Brothers and the subprime mortgage crisis.
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