Latest news with #SwatchGroup
Fashion Network
21-05-2025
- Business
- Fashion Network
Swatch shareholders reject bid by US investor to join board
Swatch Group shareholders on Wednesday rejected a bid by an American investor to secure a place on the company's board, as the family that has long dominated the watchmaker closed ranks to keep him out. Steven Wood, founder of U.S. firm GreenWood Investors, is pressing Swatch to focus more on its luxury brands such as Breguet and Blancpain in an attempt to turn around the fortunes of the Swiss company. To be elected to the board he had to win over the Hayek family, which controls about 44% of Swatch voting rights. The board had recommended Wood's bid be rejected before the firm's annual general meeting on Wednesday, and the company said 79.2% of shareholders voted against his election. GreenWood holds about 0.5% of Swatch shares and Wood was seeking to represent so-called bearer shareholders, which have a majority of the share capital, but not of the voting rights. After the vote, Wood said his bid had received strong support from investors, industry experts and Swatch employees, reinforcing his view that fresh perspectives on the board are essential to boost performance. In a statement, Wood criticised how the vote was handled, and said he would consider requesting an extraordinary general meeting to ensure the election of a representative of the bearer shareholders is conducted in line with Swiss law. Swatch said all motions were handled in accordance with legal requirements. Proxy advisers Institutional Shareholder Services and Glass Lewis had recommended shareholders vote against the re-election of Swatch's supervisory board, questioning their independence. Swatch is led by Chief Executive Nick Hayek, while his sister Nayla chairs the company that their father Nicolas helped create in the 1980s and built up into a global success story. In late 2013, a year in which Swatch made net profits of over 1.6 billion Swiss francs ($1.9 billion), its shares were worth about 600 francs. Last year, profit dropped by 75% to 219 million francs. The stock now trades at less than 150 francs. Swatch sales also slipped by nearly 15% last year, hit by sagging demand in China, which has also hurt luxury rivals like LVMH and Kering. Still, its Swiss peer and Cartier owner Richemont has retained its market appeal. Richemont's watch sales ticked up slightly in 2024 and it has seen its shares rise almost a fifth so far this year. Swatch's stock is down by around 10% in 2025 and it is the most shorted on the Euro STOXX 600 index, according to LSEG data.
Fashion Network
21-05-2025
- Business
- Fashion Network
Swatch shareholders reject bid by US investor to join board
Swatch Group shareholders on Wednesday rejected a bid by an American investor to secure a place on the company's board, as the family that has long dominated the watchmaker closed ranks to keep him out. Steven Wood, founder of U.S. firm GreenWood Investors, is pressing Swatch to focus more on its luxury brands such as Breguet and Blancpain in an attempt to turn around the fortunes of the Swiss company. To be elected to the board he had to win over the Hayek family, which controls about 44% of Swatch voting rights. The board had recommended Wood's bid be rejected before the firm's annual general meeting on Wednesday, and the company said 79.2% of shareholders voted against his election. GreenWood holds about 0.5% of Swatch shares and Wood was seeking to represent so-called bearer shareholders, which have a majority of the share capital, but not of the voting rights. After the vote, Wood said his bid had received strong support from investors, industry experts and Swatch employees, reinforcing his view that fresh perspectives on the board are essential to boost performance. In a statement, Wood criticised how the vote was handled, and said he would consider requesting an extraordinary general meeting to ensure the election of a representative of the bearer shareholders is conducted in line with Swiss law. Swatch said all motions were handled in accordance with legal requirements. Proxy advisers Institutional Shareholder Services and Glass Lewis had recommended shareholders vote against the re-election of Swatch's supervisory board, questioning their independence. Swatch is led by Chief Executive Nick Hayek, while his sister Nayla chairs the company that their father Nicolas helped create in the 1980s and built up into a global success story. In late 2013, a year in which Swatch made net profits of over 1.6 billion Swiss francs ($1.9 billion), its shares were worth about 600 francs. Last year, profit dropped by 75% to 219 million francs. The stock now trades at less than 150 francs. Swatch sales also slipped by nearly 15% last year, hit by sagging demand in China, which has also hurt luxury rivals like LVMH and Kering. Still, its Swiss peer and Cartier owner Richemont has retained its market appeal. Richemont's watch sales ticked up slightly in 2024 and it has seen its shares rise almost a fifth so far this year. Swatch's stock is down by around 10% in 2025 and it is the most shorted on the Euro STOXX 600 index, according to LSEG data.
Reuters
21-05-2025
- Business
- Reuters
Swatch family Hayek faces test as investor presses to join board
ZURICH, May 21 (Reuters) - The family that dominates Swatch Group (UHR.S), opens new tab faces an unusual test on Wednesday when an American investor tries to secure a place on the Swiss watchmaker's board, bidding to shake up its performance after a slide in its fortunes. Steven Wood, founder of U.S. firm GreenWood Investors, wants Swatch to focus more on its luxury brands such as Breguet and Blancpain, but to be elected to the board he must get past the Hayek family, which controls about 44% of Swatch voting rights. GreenWood holds about 0.5% of Swatch shares and Wood is seeking to represent so-called bearer shareholders, which have a majority of the share capital, but not of the voting rights. Swatch's board has recommended his bid be rejected when it holds its annual general meeting on Wednesday. Jean-Philippe Bertschy, head of Swiss equity research at bank Vontobel, said the power of the Hayeks was likely to thwart Wood's bid. "The chances are very slim," he said. Proxy advisers Institutional Shareholder Services and Glass Lewis have recommended Swatch shareholders vote against the re-election of Swatch's supervisory board, raising concerns about their independence. Swatch is led by Chief Executive Nick Hayek, while his sister Nayla chairs the company that their father Nicolas helped create in the 1980s and built up into a global success story. Swatch did not reply to a request for comment. In late 2013, a year in which Swatch made net profits of over 1.6 billion Swiss francs ($1.9 billion), its shares were worth almost 600 francs. Last year, profit dropped by 75% to 219 million francs, and the stock now trades at less than 150 francs. Swatch sales also slipped by nearly 15% last year, hit by sagging demand in China, which has also hurt luxury rivals like LVMH and Kering. Still, its Swiss peer and Cartier owner Richemont has retained its market appeal. Richemont's watch sales ticked up slightly in 2024 and it has seen its shares rise almost a fifth so far this year. Swatch's stock is down by around 10% in 2025. Swatch is the most shorted stock on the Euro STOXX 600 index, according to LSEG data. Bertschy at Vontobel said that although he did not expect major upheaval at the AGM, rising pressure could over the medium term open the door for changes at Swatch, which has a market capitalization of over $9 billion. Even if shareholders ultimately gain some leverage, CEO Hayek has pushed back against market pressure and periodically said he could take the company private. ($1 = 0.8324 Swiss francs)
Yahoo
21-05-2025
- Business
- Yahoo
Swatch Group (VTX:UHR) Is Paying Out Less In Dividends Than Last Year
The Swatch Group AG's (VTX:UHR) dividend is being reduced from last year's payment covering the same period to CHF4.50 on the 27th of May. The dividend yield of 3.0% is still a nice boost to shareholder returns, despite the cut. Our free stock report includes 2 warning signs investors should be aware of before investing in Swatch Group. Read for free now. If the payments aren't sustainable, a high yield for a few years won't matter that much. Before this announcement, Swatch Group was paying out 121% of what it was earning, and not generating any free cash flows either. This high of a dividend payment could start to put pressure on the balance sheet in the future. Looking forward, earnings per share is forecast to rise exponentially over the next year. Assuming the dividend continues along recent trends, we estimate that the payout ratio could reach 37%, which is in a comfortable range for us. View our latest analysis for Swatch Group The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the dividend has gone from CHF7.50 total annually to CHF4.50. This works out to be a decline of approximately 5.0% per year over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Over the past five years, it looks as though Swatch Group's EPS has declined at around 23% a year. This steep decline can indicate that the business is going through a tough time, which could constrain its ability to pay a larger dividend each year in the future. Over the next year, however, earnings are actually predicted to rise, but we would still be cautious until a track record of earnings growth can be built. Overall, the dividend looks like it may have been a bit high, which explains why it has now been cut. The company seems to be stretching itself a bit to make such big payments, but it doesn't appear they can be consistent over time. We don't think that this is a great candidate to be an income stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. To that end, Swatch Group has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
09-04-2025
- Business
- Forbes
Record Attendance At Watches And Wonders, With Tariffs Looming
Watches and Wonders took place in Geneva, Switzerland, April 1 to April 7. Watches and Wonders, the luxury watch trade show held in Geneva April 1-7 was big on numbers this year, at least in terms of attendance and reach. While the mostly elite brands exhibiting launched mostly limited edition or limited production pieces – and in some cases, one-offs, the crowds grew bigger. The fair reports record attendance, with over 55,000 visitors throughout the week, compared to 49,000 last year (+12%), 6,000 retail representatives (+5%), 1,600 journalists (+7), and 23,000 tickets sold on the public days (+21%). Social media posts throughout the fair, using the hashtag #watchesandwonders2025, had an estimated reach of more than 700 million people. In addition to being the most important showcase for watch introductions for the year, Watches and Wonders includes guided tours, workshops, presentations, panel discussions and entertainment events. Watches and Wonders is held at Geneva's Palexpo. 'It really shows the success of our initiative to open the show up to a broader audience, to all demographics,' says Watches and Wonders CEO Matthieu Humair. 'The average age of attendees is 35, so it shows that young people are interested in watches.' The new Oyster Perpetual Rolex Land-Dweller. The show is operated by the Watches and Wonders Geneva Foundation, a non-profit organization run by a committee of exhibitors. It is chaired by Cyrille Vigneron, the former CEO of Cartier. There are now 60 exhibitors, including Bulgari for the first time this year, joining other LVMH brands Hublot, Zenith, along with several Richemont brands (including Cartier, Piaget, A. Lange & Söhne, Jaeger-LeCoultre, Vacheron Constantin and Panerai), along with other big marques like Chanel and Hermès. Louis Vuitton and Breitling have yet to sign on, but perhaps the biggest gap on the exhibitor list is the Swatch Group, which includes Breguet, Longines, Omega, Blancpain and Harry Winston. 'There is still room to expand the show physically, and with the hotel capacity in Geneva,' says show chairman Cyrille Vigneron, 'There is room for the Swatch Group. They have been invited, so if they're willing, they're welcome.' Rolex booth at Watches and Wonders Despite the fact that President Donald Trump announced his administration would impose a 31% tax on Swiss exports, including watches, to the U.S. about half way through the show, the outlook was upbeat and optimistic, with plenty of gold, platinum and gem-encrusted watches on display. According to watch industry news site WatchPro, shares for the three major watch groups dropped since the announcement: Richemont, Swatch Group and LVMH shares are down 12.4%, 15.6% and 13.4% respectively. In terms of trends, some watch brands celebrated their heritage with anniversary or tribute editions, while others highlighted their iconic collections. Rolex introduced a new collection, the Land-Dweller, and Piaget introduced a new ladies' collection, the Sixtie. There were perpetual calendars by the score, and plenty of hardstone dials, along with blue dials of every color. Women were in the spotlight, particularly in the jewelry watch segment, and since case sizes are shrinking, there were more watches in general for ladies to choose from. And Bulgari broke a new record for micro-watchmaking, introducing the world's smallest tourbillon in its Octo Finissimo collection.
