Breguet Makes History

The Swiss watchmaker Swatch Group organized an exhibition in the Madrid theater. Trusting that this initiative like this and Omega efforts in the Rio Olympics will help improve their results.

Abel Amón. 22/09/2016

«Breguet, written by illustrious history,» is the title of shows that can be seen from 15 to 29 September at the Royal Theatre opens its doors to this exhibition, which began earlier this year in Geneva, and where the long historical journey of Breguet alongside some of the greatest historical figures will show. celebrities such as Marie Antoinette, Winston Churchill, Napoleon Bonaparte, Honore Balzac or Aleksandr Pushkin, who cites the watchmaker up to four times in his great poem «Evgeny Onegin».

Breguet 1
Philippe Huertas, General Manager of Breguet in Spain delivers the two clocks to the General Manager of the Royal Theatre, Ignacio García-Belenguer.

The company opens its historical archives to show their relationship with these very important people who have left their mark in their respective fields and wore Breguet watches.The Swiss maison is one of the main sponsors of the Royal Theatre and will contribute to it with two magnificent clocks, continuing a work of supporting the artistic project of the Madrid coliseum, recalling the strong link that Breguet has always had classical music and opera in particular.

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The exhibition focuses on the strong relationship of Breguet with classical music and opera in particular.

Swatch turmoil, and the Swiss watchmaker sector in general.
Although initiatives such as the sponsorship of large entities such as the Royal Theater, or the fact that Omega, one of its major brands, has been the official chronograph of the Olympic Games in Rio 2016 expected to bear fruit and help soar to the firm for the first time since 2009 has seen sales figures have fallen over the previous year (a drop of 11%, with a decrease of 52% in net profit). The anticipated results of 2016 have therefore been disappointing, something not unique to Swatch, as his rival Richemond also just presented similar results, with falls of 45% in its operating result compared to the first half of 2015.

Swatch 3

Well in the UK, bad in China and Hong Kong.
The unexpected result of the referendum on Brexit boosted sales of the watch in the UK, which led rigged a devaluation of sterling, caused sales of Swiss watches grew 13.4%. But in China, where for example Breguet forging almost half of its sales, the situation remains worrying, something that happens from the start of the anti-corruption campaign by Chinese authorities in 2013. In Hong Kong sales have fallen even more like they have done in markets that until recently were growing as Russia and the Persian Gulf now have come down by falling revenues from lower oil prices.

Paradoxically the company has not only reduced labor force but on the contrary has increased it, and has considerable excess inventory, parameters that are worrying for investors in the company and question the management of its board.

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Nick Hayek, Swatch CEO

Nick Hayek Swatch CEO questioned after the publication of 2016 results.
Investors need to blame their CEO erroneous projection made for the last few quarters, which has proven unrealistic reviewed the progress resulting in falling profits brought down by 8%. Besides poor planning circle investor blames him Hayek poor communication policy. «His communication is extremely bad in terms of timing, channels used some of his statements seem» semi-official «said to Bloomberg Urs Beck, manager EFG Assets Management, Zurich, with positions in Swatch.

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Swatch Touch Zero One

Small battle won against Apple.
Another positive news for Swatch is, again, the United Kingdom, which has thrived its application for Apple’s patent on the brand iWatch annulment. The English courts have denied the exclusive «i» in defense of other companies operating in the country starting with that letter to Apple. You can say that smart watches are those who pose an additional threat to traditional Swiss midrange watches. Swatch should use its main maisons on glamorous promotions as it has done in his brilllante exhibition at the Royal Theatre, relying also on the recovery of emerging countries, especially China, to improve their results. And, more important, should improve its management.

Disclosure: The Luxonomist is not responsible for the views expressed in the article. The text has been written freely expressing their own ideas, without receiving any compensation. The author has no business relationship with any of the companies whose shares are listed in this article.


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