Swatch Group, the parent company of Omega and Longines watches, returned to profitability in the first half of the year, with the travel retail industry benefiting from countries across the globe easing restrictions.
The company reported an operating profit of $439 million, which was much higher than the $369.5 million analysts had expected.
Looking ahead, the company is feeling bullish on its growth. It expects sales in local currencies in the second half of 2021 to surpass 2019 as more restrictions are eased. This marks an improvement from the company’s growth outlook in February this year when it expected sales to reach the levels observed in 2019.
The company’s stock value has, in response, jumped by 30 percent this year.
While these improvements are positive signs of growth for the company, it has a seemingly long way to go before it can recapture its lost market share. The company’s market cap has reduced to half of what it was in 2013 and last year, it lost its spot as Switzerland’s largest watchmaker to Rolex.
After more than 20 years, the company will also exit Switzerland’s benchmark SMI Index in September as the exchange is only going to focus on larger companies, Bloomberg reported.