Swatch Group's Crisis: Profits Plummet, China's Impact, and Legal Battles
Swatch Group's profits have dropped 90% in the first half of the year, driven by a sales slump in China. Meanwhile, activist investor Greenwood Investors is challenging the company in court.
Swatch Group has reported a staggering 90% decline in profits for the first half of the year, primarily due to a sales slump in China. Net income fell from SFr147 million to SFr17 million, with wholesale and retail sales dropping over 30% and 15%, respectively. CEO Nick Hayek faces mounting pressure from investors after overseeing a 50% decline in the company's shares over two years. Meanwhile, activist investor Greenwood Investors, led by Steven Wood, is challenging the company in court after failing to secure a board seat at the annual meeting. The legal battle involves claims of confusing procedures at the AGM and a potential push for an extraordinary shareholder meeting. The situation highlights both financial challenges and corporate governance issues at Swatch Group.
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