Swatch Group, the well-known Swiss watchmaker, has bounced back from the lows of the COVID-19 pandemic with a profitable first half of 2021. With sales exceeding 50%, the company reported a net profit of 270 million Swiss francs ($295 million) compared to a net loss of 308 million Swiss francs ($338 million) in the same period last year. Sales also experienced a significant boost, rising from 2.19 billion francs in the first half of 2020 to 3.39 billion francs this year.

The positive results have brought optimism to Swatch Group, as the company expects sales to continue improving in the second half of the year. With COVID-19 restrictions and travel bans gradually lifting, the watchmaker anticipates further growth in local currencies, surpassing levels seen in 2019. The strong increase in sales during the second quarter, particularly in June, has bolstered confidence in the company’s optimistic outlook for the remainder of the year.

The recovery in Swiss watch sales can be attributed to solid demand in mainland China and the United States, as well as the reopening of stores in Europe. However, despite this recovery, the overall value of Swiss watch exports still remains 3% below 2019 levels in the first five months of 2021. This suggests that there is still room for further improvement in the industry.

In comparison, Swatch Group’s competitor, Richemont, which owns renowned brands including Cartier, Piaget, and IWC, is set to release its latest sales update soon. It will be interesting to see how Richemont has navigated the challenges of the past year and whether it has experienced a similar recovery in sales.

The return to profit and significant sales growth by Swatch Group demonstrate the company’s resilience and adaptability in a challenging global landscape. As the world gradually recovers from the impact of the pandemic, the future looks promising for the Swiss watchmaking industry.

Useful links:

1. Swatch Group official website
2. Financial Times article on Swatch Group’s recovery