Swatch: stock down 7%; growth slows down in H2
(CercleFinance.com) - As the worst performer of the SMI Zurich index, the Swatch share is tumbling over 7% this morning, after the watch maker released 2018 results that fell short of expectations.
Contrary to expectations this summer, growth slowed significantly at the end of the year, mainly due to Asia and France.
Last year, the group recorded sales that are up 6.1% as reported to 8.5 billion Swiss francs, or +5.7% at constant exchange rates. However, in H1, sales growth excluding FX factors reached 12.6%, including a dull second half.
Over the full year, operating income rose 15.2% to 1.1 billion Swiss francs, improving the group's corresponding margin by 110 basis points to 13.6%. Increasing by a similar proportion, net income reached 867 million Swiss francs. At its next AGM the group will be asked to raise the dividend by 6.7% to eight francs per bearer share.
Despite a difficult comparison basis, January 2019 started with positive growth, the company said, with it anticipating progress in 2019.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Contrary to expectations this summer, growth slowed significantly at the end of the year, mainly due to Asia and France.
Last year, the group recorded sales that are up 6.1% as reported to 8.5 billion Swiss francs, or +5.7% at constant exchange rates. However, in H1, sales growth excluding FX factors reached 12.6%, including a dull second half.
Over the full year, operating income rose 15.2% to 1.1 billion Swiss francs, improving the group's corresponding margin by 110 basis points to 13.6%. Increasing by a similar proportion, net income reached 867 million Swiss francs. At its next AGM the group will be asked to raise the dividend by 6.7% to eight francs per bearer share.
Despite a difficult comparison basis, January 2019 started with positive growth, the company said, with it anticipating progress in 2019.
Copyright (c) 2019 CercleFinance.com. All rights reserved.