Jewelry Lifts Swatch Sales and Profit

RAPAPORT... Swatch Group, the owner of luxury jewelry brand HarryWinston, saw an increase in sales across all sectors in the first half amidstrong consumer demand, it said. Group revenue climbed 15% to $4.3 billion (CHF 4.27billion), with operating profit up 70% to $634.6 million (CHF 629 million). Netprofit jumped 67% year on year to $472.2 million (CHF 468 million). Sales of watches and jewelry - including Harry Winston - grew 15%to $4.17 billion (CHF 4.14 billion), while profit for the category soared 62%to $691.2 million (CHF 685 million). The higher sales prompted the group toincrease production of jewelry and timepieces. The Asia and North America regions showed the strongestgrowth in the six months ending June 30. Swatch Group expects higher sales inthe second half of the fiscal year, as the company launches new collections andbenefits from a higher anticipated sales volume during the period before andduring the holidays. "Consumer demand, particularly from millennials, forauthentic innovative brand products is greatly increasing on a worldwide scale,regardless of region or price segment," the company said. "Consumers want real values, not only materiallybut also emotionally. Increasing interest in pre-owned andvintage products favors strong, innovative and authentic brands. This is animmense opportunity for the 18 Swatch Group brands."