Swatch has revealed it will probably not reach the double-digit turnover growth it had forecast before, mainly because of adverse exchange rates, says CEO Nick Hayek.
"Double-digit revenue growth is illusion"
Between 350 million Swiss francs (287 million euro) and 500 million Swiss francs (411 million euro) will apparently be lost because of exchange rates, according to Nick Hayek in a Business of Fashion interview. In January, he had expected Swatch to achieve a double-digit revenue growth if Chinese sales proved to be good.
"It's an illusion to think double-digit revenue growth can be reached with this currency situation. If the situation remains the way it is, you can forget about double-digit revenue growth at actual rates for anyone in the Swiss watch industry", the CEO said. Growth between 5 and 10 % for the sector could be possible, but it will "probably be closer to 5 percent".
Swatch's 2013 gross turnover grew 8.3 % in 2013, its slowest growth in 4 years. It has also lost 100 million Swiss francs (82 million euro) in the second part of last year because of negative exchange rates.