BREAKING NEWS

Swatch Group won't renew Calvin Klein licence agreement

Swatch Group won't renew Calvin Klein licence agreement
FILE PHOTO: A Swatch logo is pictured in front of the newly built headquarters, designed by Japanese architect Shigeru Ban, of the brand owned by Swatch Group, in Biel, Switzerland October 3, 2019. REUTERS/Denis Balibouse -
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DENIS BALIBOUSE(Reuters)
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ZURICH (Reuters) – Swiss watchmaker Swatch Group <UHR.S> will no longer make watches and jewellery under the Calvin Klein brand, reducing its exposure to a price segment that is under pressure from smartwatches and other fashion watches.

The group, which also makes high-end Omega and cheaper plastic Swatch watches, said in a statement on Tuesday it would not renew the collaboration with Calvin Klein when it expires “in the near future”, attributing the decision to uncertainties in Calvin Klein Inc.‘s management.

Vontobel analyst Rene Weber said this would reduce group sales by about 2%, but that the earnings contribution was likely zero due to the heavy competition.

Swatch Group shares were flat at 0957 GMT in line with the Swiss market <.SSMI>.

(Reporting by Silke Koltrowitz)

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