Bienne, Switzerland–Swatch Group reported net sales of $3.76 billion in the first half of the year, which is a decrease of 11 percent, or 13 percent at constant exchange rates.
In the Watches and Jewelry segment, net sales declined 11 percent at constant exchange rates.
Net income was $267 million, which was 52 percent below last year.
Last week, Chief Executive Officer Nick Hayek said that the company’s sales might fall as much as 6 percent this year, a turnaround from the prediction of sales growth at the beginning of the year.
While the company has struggled thus far in 2016, Swatch Group said Thursday that it has seen double-digit growth in retail sales in mainland China and Southeast Asia. Additionally, the first three weeks of July have shown marked improvement in mainland China from last year’s figures.
In Hong Kong, wholesale is faring badly, while poor retail sales have “bottomed out.”
Looking toward the second half of 2016, Swatch Group said it expects better results that will even out with 2015 due to last year’s weak second half.
The group anticipates growth in Europe, particularly Spain and Italy as tourism in those countries increases.
Swatch Group also expects to get a boost from sporting events, including the upcoming Summer Olympic Games in Brazil, at which Omega serves as official timekeeper. Omega is releasing nine watches specifically for the Games.
Tissot is the official timekeeper for the Tour de France, in honor of which it has also launched a new model, and has a new NBA collection as well.