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After a strong recovery from the COVID-19 pandemic, Swiss watchmakers have been grappling this year with extended lockdowns in the important Chinese market.
The maker of Omega watches, which did more than 40% of its sales in Greater China in 2021, cited in a statement “sales losses of approximately CHF 400 million due to closures of warehouses and many retail stores in April and May in China”.
Sales at constant currency rose 7.4% to 3.61 billion Swiss francs ($3.68 billion) in the first six months of the year, said the world’s biggest watchmaker, whose shares fell out of the Swiss blue-chip SMI index last year.
Net profit rose 18.5% to 320 million Swiss francs, short of a 324.5 million mean Refinitiv estimate, while the operating margin improved to 13.9% from 11.9% a year ago.
It said it had “excellent prospects in all segments with anticipated double-digit sales growth in local currencies for the entire year”.
Peer Richemont reports sales for the quarter to June on Friday.
($1 = 0.9820 Swiss francs)
