Biel/Bienne, Switzerland– Swatch Group reported Thursday that its profits declined sharply in 2014, amid moves it is making to combat the strong Swiss franc and launch a competitor to Apple Watch.
In its full-year report released Thursday, Swatch Group reported that gross sales in 2014 were nearly $10 billion, a 5 percent increase as compared with 2013 when gross sales totaled $9.57 billion.
Net sales climbed to $9.4 billion from $9.2 billion, a 2 percent increase year-over-year.
Operating profit, however, dropped 24 percent to $1.9 billion from $2.5 billion in 2013. Net income also declined, totaling $1.5 billion, a 27 percent decrease year-over-year.
In its Watch & Jewelry segment specifically, without production, gross sales rose 6 percent and net sales climbed 4 percent in 2014, “despite an ongoing long-term defensive price adjustment policy,” Swatch Group said.
Exports of wristwatches for the entire Swiss watch industry to the end of December 2014 increased about 2 percent.
“Exports of wristwatches for the entire Swiss watch industry to the end of December 2014 increased about 2 percent.”
The company reported that all brands made additional marketing investments last year in markets they believe will grow: the United States, Japan and mainland China. Omega, specifically, signed a renewal contract until 2022 with the U.S.’s PGA Golf tour and Longines increased its presence in the equestrian industry, mainly in Japan and the U.S.