Swatch Says Outlook is Improving After Decline in Full-Year Revenue, Profit

By Brian Blackstone

ZURICH-Swatch Group on Thursday reported a plunge in sales and profit for 2016, underscoring how shaky consumer confidence around the world and weakness in important markets like Hong Kong have taken their toll on the Swiss watch industry.

Swatch said net revenue fell 11% to 7.55 billion Swiss francs ($7.6 billion) last year from the previous year. Net profit tumbled 47% to CHF593 million.

Still, the company said that 2016 ended on a high note, which should lead to "healthy growth" in 2017.

"The months of November, December and January showed, particularly in mainland China, very good growth in the watches and jewelry segment, with a substantial improvement in operating margin," Swatch said.

-Write to Brian Blackstone at brian.blackstone@wsj.com

(END) Dow Jones Newswires

February 02, 2017 01:48 ET (06:48 GMT)

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