Shares of Swatch and Watches of Switzerland rose this week after reporting better-than-expected results for the first half of the year. These results indicated that the market for new high-end watches is on the rise, despite the decline of the pre-owned market.
Swatch Group, which consists of Blancpain, Breguet, Longines, and Omega reported a 36% growth in operating profit to $797.23 million. Net sales rose by 18% compared to the same time last year.
CEO Nick Hayek revealed that in Swatch-owned and operated stores, average store sales surged by 30% worldwide. This was largely attributed to the success of the Omega MoonSwatch cross-collaboration between Swatch and Omega.
“What is really impressive is the United States as well as Europe across all price segments,” Hayek remarked in an interview with Bloomberg. The company added in a statement that global demand for Swatch and the MoonSwatch accelerated, despite wavering demand in the pre-owned market.
Watches of Switzerland, one of the industry’s biggest retailers, sells a range of high-end brands including Rolex. For the fiscal year ending April 30, the company’s reported revenue grew by 19% to $2.02 billion, matching Wall Street estimates.