Swatch reports record profits in 2013

Swatch is the world's largest watchmaker Keystone

Swatch hauled in a record CHF8.8 billion ($9.7 billion) in sales in 2013, representing an 8.3% increase over the previous year despite fewer Swiss watch exports to China.

The Swiss watchmaker, which is the largest in the world, gained market share in 2013 and has reported strong sales in the early days of 2014.

Overall, watch exports from Switzerland to the large Chinese market declined in 2013 after China’s government cracked down on luxury items given as illegitimate gifts. However, Swatch’s middle-market brands such as Tissot and Longines are not considered luxury goods and continue to sell well to the Chinese middle class.

Swatch expects the strong sales trend to continue in the coming year.

“Based on the strong start by all brands in the first few days of January, dynamic growth is expected for the entire year 2014,” the company said in a statement on Friday.

Swatch’s 2013 sales growth benefited from its acquisition of the jeweller Harry Winston last year. Its bottom line was also boosted by CHF402 million in damages from a lawsuit involving Swatch’s dissolved partnership with the jeweller Tiffany.