Swiss watchmaker Swatch Group AG reported higher sales and profit as China’s reopening fueled a rebound, pushing results above pre-pandemic levels.
Operating profit advanced 36% to 686 million francs ($792 million), the maker of Omega and Longines watches said Thursday. Analysts expected 604 million francs.
Chief Executive Officer Nick Hayek told Bloomberg News in January that sales could reach a record this year on the China recovery. Optimism about the luxury industry has been tempered by a slowdown in the US, which started appearing in Swiss watch exports in April.
Revenue reached 4 billion francs, ahead of analysts’ estimates. Sales in Hong Kong tripled while mainland China grew by double digits. The company said growth was strongest in the lowest price level of watches and jewelry.
The company sees “excellent growth opportunities” for the second half of 2023. It cautioned that unfavorable currency moves may weigh on results.
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