DEPLOYANT – Luxury watch reviews & horological lifestyles – Luxury watch reviews & horological lifestyles
A few weeks back, Swatch Group announced their results for the 2017 Financial Year. Last year is a seemingly wonderful year for the Swiss Watch conglomerate. The key headline is perhaps the 5.4% growth that they have recorded in their net revenue on a year-on-year basis. This had a big influence on their net income, which increased by 27.3% to CHF 755 million, on the back of a wider net margin (9.5%, up from 7.9% in 2016).
In terms of headline figures, Swatch Group had certainly performed fairly well last year. This came from the backdrop of an excellent economy, which had performed unexpectedly well despite the numerous potential scares that had occurred throughout 2017. To put this into perspective, the Dow Jones Index – which tracks 30 major companies within the New York Stock Exchange – had rose by 28.11% in 2017 (with dividends reinvested). The other major talking point would be the world of cryptocurrencies, in which the Bitcoin had grew 1,300% in value last year. Although the former is a better gauge of market sentiments, the latter had certainly made some people very rich. This would have a ripple effect on the economy – inducing spending on discretionary items, such as luxury goods.
Introduction to the Swatch Group
Harry Winston is one of the twenty brands under the Swatch Group umbrella.
Swatch Group is perhaps one of the largest conglomerates in the horological industry. Besides the production of watches, Swatch Group’s portfolio also includes jewellery, retailers, as well as movement producers.
The Swiss conglomerate currently owns eighteen watch brands, as well as two multi-brand retail companies. The brands within Swatch Group’s portfolio is rather diversified. It ranges from entry-level brands such as Flik Flak and Swatch, to the high-ends ones like Breguet and Harry Winston. Of course, they also own some of the world’s most well-known watch manufacturers – which includes Omega, Longines, and Tissot.
Swatch Group 2017 Key Financial Result
The Group’s revenue in 2017 increased by 5.4%, to CHF 7.96 billion. This is supported by the 6.9% growth in sales from the Watches & Jewellery segment, which traditionally constitutes more than 95% of Swatch Group’s revenue (Figure 1). While the available figures for the revenue breakdown were from the 2016 Financial Year, we can safely deduce that the trend remained similar in 2017.
Figure 1: Based on historical statistics, more than 95% of Swatch Group’s revenue is derived from Watches & Jewellery. Source: Bloomberg
It is also notable that this result was also partially contributed by the sales figures in December. While we do not have the exact figures of the sales during that period, but Swatch Group mentioned that last December’s turnover was the second best monthly figure in the entire history of the conglomerate. This pretty much coincides the bullish economy that we have observed, have attributed to the extraordinary turnover in the final month of 2017. This is also in addition to the fact that December is the month of festive seasons (Christmas and New Year’s Eve), and it […]
The post Swatch Group 2017 Financial Result and Analysis appeared first on DEPLOYANT – Luxury watch reviews & horological lifestyles.
Article from: DEPLOYANT – Luxury watch reviews & horological lifestyles, by Robin Lim
Visit here for more on Best watches for men.
from Best Watches For Men http://ift.tt/2FcwrW4