Swiss watchmaker Swatch Group forecast 2016 sales growth will be well over 5 percent in local currency after reporting 2015 net profit fell 21 percent to 1.12 billion Swiss francs ($1.10 billion), hit by foreign exchange losses.
Net sales slipped 0.9 percent at constant exchange rates to 8.45 billion francs, and were down 3 percent at current exchange rates, Swatch reported on February 03.
Analysts polled by Reuters had expected net profit of 1.195 billion on sales of 8.66 billion. Swatch proposed an unchanged dividend of 7.50 francs per bearer share and 1.50 francs per registered share.
Swatch also announced a new share buyback programme from 2016 to 2019 worth up to 1 billion francs.
"January 2016 shows positive growth compared to the previous year, especially in mainland China, the company said in a statement. "The Swatch Group expects growth well over 5 percent for the entire year in local currency."
Swiss watchmakers have been facing difficult trading conditions for some time as Chinese consumers, put off by a government crackdown on corruption, no longer splash out on watches as lavishly as before, and a weak oil price dents the spending power of Russian and Middle Eastern customers.
Last November's Islamist attacks in Paris have also added to watchmakers' worries by curbing tourist flows to Europe's luxury shopping capital.
With its 18 brands, Swatch is present across all price categories, from luxurious Breguet timepieces to colourful plastic Swatch watches, a strategy that has often helped it in the past when only some price segments were under pressure.
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