May 20, 2021
Swatch denies interest in acquiring Kering watch brands
May 20, 2021
In response to recent market speculations, Swatch Group said that it is not interested in acquiring watch brands from French luxury group Kering.
When asked whether the Swiss-based business would be interested in such an acquisition, managing director Nick Hayek responded that that was not the case. However, speaking generally, he did not exclude the possibility of any acquisitions by Swatch “if an opportunity arises.”
Hayek also emphasised that Swatch, which owns watch brands Bréguet, Oméga, and Longines, has witnessed “fantastic growth” in the US. Sales there rose by 38% in April compared to the same period two years ago, before the coronavirus pandemic. He added that the brand’s sales have also been strong in China.
On the other hand, the head of Swatch did note that the situation in Europe remained difficult due to lockdown regulations, especially in France and Germany, which are being imposed in order to contain the spread of new strains of coronavirus. In Britain, according to Hayek, the situation has improved since the reopening of stores in the country from mid-April.
Swatch said that, in terms of the business as a whole, its financial results for its second quarter are “clearly above 2019 levels.”
In January, the Swiss watchmaker reported a net loss of 53 million Swiss Francs ($60 million) in 2020. This was the business’ first yearly loss since 1983, the year that Swatch group was created in its current form and the launch of the plastic Swatch watch.
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