ZURICH: Swatch Group reported improved sales but missed profit forecasts on Tuesday as the Swiss owner of the Omega, Longines and Tissot watch brands was hit by negative currency effects.
Net sales rose 8.5% year on year at constant exchange rates in the first half of 2026 to reach 3.12 million Swiss francs ($3.85 million) despite the geopolitical challenges in the Middle East, the company said.
Operating profit was 52 million Swiss francs, down from 68 million francs a year earlier, missing forecasts for 120 million francs.
"Positive to see Swatch Group on a strong growth wave, though this has not translated into profitability," Bank Vontobel analysts said. "We see downside risk to market estimates."
Profits were burdened by negative currency effects and the results from the production segment owing to the decision to maintain capacities and jobs, Swatch said.
A strong acceleration of sales in May and June points to continued growth and improved profitability in the second half, the company added. - Reuters
