The result of Swatch Group will be deeply affected by the pandemic and the ensuing economic crisis. Nick Hayek expects a difficult 2020, according to AWP, which quotes an interview to be published this Friday in Balance sheet. The boss of the number one in Swiss watchmaking says he is convinced “that demand in the second half will exceed that of last year”.
A beginning of recovery is already being felt in Korea, Taiwan and China, continues Nick Hayek, who recalls that the Swatch Group makes more than a third of its sales in the Middle Kingdom. It is also counting on growth in online commerce, which until now has only represented 5% of the conglomerate’s sales. The director believes that the objective of achieving 20% of sales through this channel is “not ambitious enough”.
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Not ready to give up
Regarding his group and its financial situation, Nick Hayek considers that he is “totally undervalued” on the stock market. He does not, however, plan to withdraw from listing on SIX, which manages the Swiss stock exchange. According to him, such an operation could only be done “through debt, and we don’t want that”.
The 65-year-old boss also intends to keep the management of Swatch Group: “At least as long as it suits me and others want me.” As for the possible resumption of his post by Marc Hayek, current director of Blancpain, he replies that his nephew is doing “excellent work” and “undoubtedly” has the potential to manage the entity successfully, but that he will not be forced to do so and must decide for himself his professional future.
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