Pursuits
Swatch Plunges as Luxury Malaise Spreads From Asia to Europe
- Swatch CEO sees full-year sales drop, aims to limit decline
- Drop in operating profit is biggest in at least 15 years
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Swatch Group AG shares plunged as the watchmaker warned of a collapse in first-half profit and cut sales guidance for the year, adding to a luxury malaise that has spread from Hong Kong to other top markets such as France and Switzerland.
The stock fell as much as 14 percent as the Swiss maker of Omega and Tissot timepieces said earnings slid 50 percent to 60 percent. Analysts expected a 22 percent drop in net income. The impact on demand of Thursday’s deadly attacks in Nice means sales will be less than forecast earlier in the year, Chief Executive Officer Nick Hayek said by phone.