The Swatch Group is trading 5.8% down at CHF 191.25 after reporting half-year results that highlighted a significant squeeze on profit margins despite a rise in top-line revenue.
- Revenue grew approximately 9% to $3.7 billion, supported by the success of the Audemars Piguet collaboration, yet net earnings fell below $20 million.
- Profitability was severely impacted by rising labor costs and higher operational expenses, which pressured the company's bottom line.
- Investors reacted negatively to the disconnect between sales growth and margin compression, weighing heavily on the stock's performance.