Swatch watches defy high-end industry slump

First published: 14-08-2009

Swatch watches are doing so well with consumers that second-half sales for the organisation are matching the company's transactions in the same period of 2008.

The world's largest watch producer's profits fell by around 16 per cent in the first quarter of the year, though this was short of the 26 per cent drop suffered by the average Swiss producer.

However, profits now total an expectation-beating £169 million.

All is not well for the organisation, which is struggling to pass on its luxury timepieces, though this in itself is causing many people to buy its cheaper brands and thus balance is being restored.

Speaking to Reuters, chief executive Nick Hayek said: "The very high-end brands such as Blancpain, Breguet and Glashuette are having a more difficult time - not with respect to customers, they are buying - but because retailers are scared about ordering watches costing $200,000, $300,000, $400,000 (£120,000, £180,000, £240,000)."

Earlier this week, Kristen Bex of the Examiner said that Swatch is reliving its 80s heyday after it announced that it would be rereleasing a number of its signature designs from the era.

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