(RTTNews) - Swatch Group AG (SWGAF, SWGNF, UHRN.SW), a Swiss watches and jewelry producer, announced Tuesday a decline in overall net profit for the first half yet an increase in profit attributable to shareholders driven by higher net sales.

On current trading the company highlighted strong sales momentum in May and June, posting a 13.1 percent gain at constant exchange rates together with an operating margin of 8.6 percent.

Looking to the second half of 2026 the firm expects sustained expansion and higher profitability.

For the first half the company posted a net result of 16 million francs, down from 17 million francs a year earlier. Net income attributable to shareholders rose to 9 million Swiss francs or 0.04 franc per share, above the prior-year 3 million francs or 0.01 franc per share.

Result before income taxes decreased to 52 million francs from 72 million francs last year.

The company recorded an operating profit of 52 million francs, equal to an operating margin of 1.7 percent, compared with 68 million francs a year ago.

The outcome reflected negative currency impacts and Production segment results that the company chose to sustain in order to protect production capacity and employment without using reduced working hours compensation.

Net sales reached 3.121 billion francs, up 2.0 percent from 3.059 billion francs last year, supported by solid performance across all price segments. Net sales advanced 8.5 percent at constant exchange rates despite negative currency effects of roughly 200 million Swiss francs and geopolitical tensions in the Middle East.

In the second quarter sales rose 9.4 percent at constant exchange rates.

The Watches and Jewelry segment, excluding Production, delivered strong results with sales up 9.5 percent at constant exchange rates.