Swiss watch maker Swatch has produced a better than expected first half year of growth and said demand for high priced timepieces shows no signs of weakening. The world’s largest watch company said sales increased at all its watch divisions, but the strongest growth came from luxury brands such as Omega and Tissot.
Gross sales rose 13% to 1.5 billion euros, although part of that was a benefit from favourable exchange rates. Net profit increased by 24% to 209 million. That follows record profits last year. Swatch, which is best know for inexpensive plastic fashion watches, said a shift in its product mix towards higher priced goods was a major factor in the increased profitability, however performance of its Swatch brand had also picked up. The company said it is “very optimistic” about the rest of the year, but also warned sales might slow because of weakening in the global economy.