Swatch launches art-themed Macau pop up
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Swiss watch giant Swatch Group said Thursday it suffered a net loss of 53 million Swiss frances (49 million euros) last year as the coronavirus ravaged the global economy.
Sales were down more than 32 percent at 5.5 billion Swiss francs, short of analyst forecasts compiled by the AWP agency for 5.8 billion Swiss francs.
In 2019, the company, famous for its trendy multi-color plastic watches, had posted a profit of 748 million Swiss francs.
Swatch said the pandemic slashed sales by more than 43 percent in the first quarter last year as the authorities imposed a sharp lockdown to try and curb the spread of the virus.
As restrictions were subsequently eased, sales picked up again but remained well below normal levels, with business in tourist hotspots and airports hit badly.
Swatch said it closed 384 outlets over the course of the year, with Hong Kong especially hard hit, falling from 92 in 2019 to 38 last year.
For this year, the company said it hopes sales will recover to close to 2019 levels as the economy stabilises, citing China’s example.
Questions & Answers
Q.What was Swatch Group's net loss last year?
What was Swatch Group's net loss last year?
Swatch Group suffered a net loss of 53 million Swiss francs last year. This equates to 49 million euros, as the coronavirus significantly impacted the global economy and company sales.
Q.How much did Swatch Group's sales decline last year compared to analyst forecasts?
How much did Swatch Group's sales decline last year compared to analyst forecasts?
Sales were down more than 32 percent, reaching 5.5 billion Swiss francs. This figure fell short of the 5.8 billion Swiss francs that analysts compiled by the AWP agency had forecast for the period.
Q.How many outlets did Swatch Group close over the year, and which region was particularly affected?
How many outlets did Swatch Group close over the year, and which region was particularly affected?
Swatch Group closed 384 outlets during the year due to pandemic impacts. Hong Kong was especially hard hit, seeing a reduction from 92 stores in 2019 to just 38 last year.
Q.What is Swatch Group's sales expectation for this year?
What is Swatch Group's sales expectation for this year?
For this year, the company hopes sales will recover to close to 2019 levels. This optimism is based on the expectation of economic stabilisation, with China cited as a positive example.
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