The FINANCIAL -- Swiss watchmaker Swatch Group AG posted a forecast-beating full-year profit. Swatch Group reported a 9% decline in 2009 net profit but gave an optimistic outlook for this year.

Net income fell 9 percent to 759 million Swiss francs ($708 million), company said today in a statement, according to Bloomberg. That beat the 700 million-franc median of 13 analyst estimates compiled by Bloomberg. Swiss watch exports fell 22 percent in 2009, the biggest decline since 1932, as retailers in the top 10 markets slashed orders to adjust for lower demand for luxury timepieces, a trade group said last week.

The same source informs that Swatch Group said it expects “organic” sales growth and improved margins in 2010. Full-year gross sales fell 9.1 percent to 5.42 billion francs, the company said Jan. 20.
 
The impressive profit number adds to growing signs the watch industry may be emerging from its most severe slump in demand in decades and comes after a flurry of positive comments from other luxury goods makers such as Hermes, LVMH and Burberry, Reuters reports. "The main reasons for this positive outlook are the excellent start in 2010, increasing order entries as well as the improving economic environment and market confidence worldwide," Swatch Group said in a statement.

According to the same source, the group behind top-end watch brands such as Blancpain and Breguet said last week it is aiming for a record year in 2010 as demand for its timepieces rebounded in recent months.

"Our exports rose over 30% in December measured in Swiss francs, January is in that range again, and also February looks similar," Chief Executive Nick Hayek told Dow Jones Newswires, adding the comparison base has become easier because January and February of last year were poor, according to The Wall Street Journal. While important markets such as China, France, Germany, and the U.K. continue to grow, the situation remains difficult in the U.S. and in Japan.

"The U.S. market is unpredictable. It will surely grow this year from the very low level in 2009, but U.S. consumers currently don't buy anything that doesn't come at a hefty discount, regardless of the quality," Hayek said, the same source reports.

Richemont, the world’s largest jewelry maker, in January reported an unexpected gain in third-quarter revenue as Americans spent more on Cartier necklaces and IWC watches, Bloomberg informs. Revenue increased 2 percent to 1.59 billion euros ($2.2 billion), while analysts had estimated a decline.

Swatch said it’s proposing Jean-Pierre Roth, former chairman of the Swiss National Bank, and Chief Executive Officer Nick Hayek be appointed to its board of directors, according to the same source. The watchmaker cut its dividend 5.9 percent this year to 80 centimes per registered share and 4 francs per bearer share.

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