Nick Hayek says strong CHF is hitting watchmaker’s margins.
Shares at Swatch Group took a tumble on Friday as the watch company’s chief executive Nick Hayek voiced fears over the strength of the Swiss franc.
Hayek told Swiss newspaper Blick that the strength of the Swiss franc was hitting margins. In particular, he pointed towards the Swiss franc’s strength against the US dollar.
"It hurts us that the Swiss franc appreciates because we produce nearly everything in Switzerland,” Hayek told the newspaper. "If the franc rises by 10 centime against the dollar, this costs us [CHF] 280 million.”
Shares at Swatch have risen by 40 percent over the past year as the group prepares to post record results but shares dropped 2.7 percent on Friday morning as the Blick interview was published.