Swatch 2004 Sales Increase 4.5% on Asian Demand

Swatch 2004 Sales Increase 4.5% on Asian Demand

Hugo Miller
Associated Press
Geneva

Swatch Group, the world's largest watchmaker, said full-year
revenue increased 4.5 percent last year as the Swiss company sold
more of its Omega and Rado watches in the Asian countries
including China and Japan.

Sales climbed to 4.15 billion Swiss francs (US$3.49 billion)
from 3.97 billion francs a year earlier, Swatch said today in an
e- mailed statement. Analysts surveyed by Bloomberg News expected
sales of 4.24 billion francs, according to their median estimate.

"While Europe proved an extremely challenging environment for
many brands, the markets in Asia and the Middle East generally
performed very well," Biel, Switzerland-based Swatch said in an
e- mailed statement.

Like Cie. Financiere Richemont AG, a Swiss competitor, Swatch
is opening outlets in Asia to tap demand for the company's most
expensive brands. The region accounts for about a third of
Swatch's revenue and the company is trying to fuel growth by
building a flagship store in Tokyo's Ginza shopping district.

Swatch's registered shares rose 15 percent in 2004. Shares of
Richemont, the maker of Cartier watches, gained 27 percent during
that period, while LVMH Moet Hennessy Louis Vuitton SA, the
world's biggest luxury-goods company and maker of Tag Heuer
watches, dropped 2.3 percent.

The pick-up in demand from Asian consumers helped Swatch
overcome the Swiss franc's 8.3 percent gain against the dollar
last year, which eroded the value of U.S. revenue. The company
generates about 12 percent of its revenue from the U.S. and 50
percent from Europe.

Swatch expects "solid growth" in Swiss francs this year and
will examine any acquisition opportunities "in depth," according
to the statement.