The Swiss manufacturer of brands such as Omega, Longines, and Tissot reported an 11 per cent decline in sales. The decrease was attributed to poor demand in China, Hong Kong, and Macau. Sales in other territories reportedly reached record levels.
In a report, the company explained that it expected business in China to improve in the second half of the year.
“In China, there are first positive signs of improvement, particularly in e-commerce and the reduction of inventories at retailers,” the statement reads.
“The group therefore expects an improved market environment in the greater China region in the second half of the year [and] a further reduction of inventories at Chinese retailers and thus a recovery in orders. E-commerce in China continues to show positive signs of increased consumption.”
Sales of jewellery and watches decreased by 13 per cent, and group net profit dropped by 88 per cent. Swatch recently announced the launch of a new AI design platform, known as AI-DADA. A special report also detailed increasing tensions on the board over the future direction of the company.
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