ZURICH, Jan 25 — Swatch bounced back into profit last year, with China and the US leading the recovery even if sales still remain below pre-pandemic levels, the Swiss watch giant said today.

The company, which includes luxury brands Omega, Tissot and Longines along with the bright plastic watches it sells under its own name, earned a net profit of 774 million Swiss francs (RM3.5 billion) last year.

That compared with a loss of 53 million francs in 2020, a bad year for luxury watchmakers as many sales were traditionally made during travel that was brought to a near halt by the pandemic.

Sales rebounded by 30.7 per cent last year to 7.3 billion Swiss francs. 

When currency fluctuations are stripped out, that is still 7.4 per cent below pre-pandemic levels, although the firm has been closing the gap.

It said sales in the final quarter of last year surpassed those in 2019 at constant exchange rates, but it did not provide details.

China and the United States led the recovery as many luxury buyers decided to buy watches at home rather than when travelling, with Swatch reporting record sales in both markets.

Swatch is also a major supplier of watch components, and it said sales in this segment have also returned to near pre-pandemic levels.

It expects double-digit sales growth in local currencies in 2022. — AFP