Swatch Reports Highest Profit in Three Years Amid Watch Rebound

BIEL, Switzerland - Swatch Group AG, the maker of Omega and Tissot timepieces, reported the highest first-half profit in three years, fueled by Asian demand and market share gains across its collection of 18 brands Operating profit rose 70 percent to 629 million francs, the Biel, Switzerland-based company said in a statement Wednesday The results underline the Swiss watch industry's recovery following a multiyear downturn.

Swatch is benefiting from renewed appetite for luxury timepieces in China and Hong Kong Swatch had been lowering prices at its Tissot brand to as little as $365 for a Swiss-made automatic watch Swatch said all its brands, including middle- and lower-end watches, showed an acceleration in sales, and that the positive trend continued in July.

Inventory levels rose 6 percent to 6.7 billion francs at the end of June, fueled by purchases of gold and diamonds, Swatch said. . Source