Swatch Group Returns to Profit, Sees Strong Sales Ahead

SwatchPAY! watches, usable for pay-by-the-wrist contactless payments, are seen at the shop of Swiss watch manufacturer Swatch in Zurich, Switzerland April 14, 2021. (Reuters)
SwatchPAY! watches, usable for pay-by-the-wrist contactless payments, are seen at the shop of Swiss watch manufacturer Swatch in Zurich, Switzerland April 14, 2021. (Reuters)
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Swatch Group Returns to Profit, Sees Strong Sales Ahead

SwatchPAY! watches, usable for pay-by-the-wrist contactless payments, are seen at the shop of Swiss watch manufacturer Swatch in Zurich, Switzerland April 14, 2021. (Reuters)
SwatchPAY! watches, usable for pay-by-the-wrist contactless payments, are seen at the shop of Swiss watch manufacturer Swatch in Zurich, Switzerland April 14, 2021. (Reuters)

Swiss watchmaker Swatch Group said it expected double-digit sales growth in local currencies this year after sales and profits recovered in 2021.

It returned to a net profit of 774 million Swiss francs ($845 million), from a 53 million loss in 2020, while sales at constant currency rose nearly 30% to 7.31 billion francs, the maker of Omega and Longines watches said in a statement on Tuesday.

Sales of Swiss watches recovered strongly last year from the slump caused by pandemic-related lockdowns, but Swatch Group has been losing market share to industry major Rolex and connected watches like the Apple Watch.

Its shares, which rose significantly less than peers last year, fell out of the blue-chip SMI index in September.

Peer Richemont also posted a sales jump this month thanks to its strong jewellery business amid a wider luxury goods revival.

Swatch Group's operating margin reached 14%, after 0.9% last year and 12.4% in 2019. Its Watches & Jewelry segment (excluding production) had an operating margin of 17.7% for the entire year and 18.4% in the second half.

It said its board of directors would decide on its dividend proposal at its next meeting.



Michael Kors Owner Capri's CFO to Join Macy's as Finance Head

People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. (Reuters)
People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. (Reuters)
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Michael Kors Owner Capri's CFO to Join Macy's as Finance Head

People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. (Reuters)
People walk by a Michael Kors store in Lakewood, Colorado June 1, 2016. (Reuters)

Capri Holdings' chief financial officer and operations head, Thomas Edwards, will leave the luxury holding company to assume similar roles at department store chain Macy's in June.

Edwards, who has been with the company since April 2017, will be succeeded by unit Michael Kors' Rajal Mehta as interim CFO, Reuters reported.

The change at Capri comes amid reports of Italian luxury group Prada moving closer to a deal for its Versace brand.

In March, Capri said Donatella Versace would step down as the main designer for Versace after almost three decades.

Edwards will replace Adrian Mitchell at Macy's. Mitchell, appointed finance head in 2020, was most recently involved in a turnaround at the Bloomingdale's parent rolled out by CEO Tony Spring.