Swatch boss not thinking about quitting yet
Published: Saturday, Mar 30th 2024, 13:30
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Swatch Group CEO Nick Hayek turns 70 this year, but is not yet thinking of retiring. "As long as it's fun, I see no reason to stop," he said in an interview with the "Neue Zürcher Zeitung" on Saturday.
"I come from a creative background, filmmaking, and this company offers so many opportunities to be creative. That gives me satisfaction and strength," said Hayek.
Hayek assured that the company is "prepared for all eventualities" when it comes to succession planning. Recently, the nomination of his nephew Marc Hayek for a seat on the Board of Directors gave rise to speculation that he could one day take over the management of the Group. Marc Hayek has been part of the Group Executive Board since 2005 and manages luxury brands such as Blancpain and Breguet.
Next generation is ready
"We know that Marc is committed to the company, that he has passion, does very good work and represents our corporate culture. But whether he really wants to lead this company at some point or whether he has other priorities is another question," said Nick Hayek. In any case, he and his sister would not order Marc Hayek to take over as CEO.
According to the CEO, however, the proposal to elect Marc Hayek to the Board of Directors is a sign of continuity both internally and externally. "The next generation of Hayeks is also committed to the Swatch Group."
Reluctant customers in China
After a very good year in 2023, when the Swatch Group was able to increase sales by almost 13 percent in local currencies, there are now signs that the strong growth is slowing down. "The USA is still growing, but a little less quickly, and we see a clear dichotomy," Hayek noted. Business in the company's own stores is going well, but retailers are unsettled and buying less. They are afraid of having too much stock.
Meanwhile, Japan continues to develop well, according to Hayek. "Things are also going quite well in Europe. But it has become more unpredictable." In China, on the other hand, where the Swatch Group generates a third of its sales, customers are hesitating for a long time before making a purchase. "I assume that the Chinese market will remain difficult until the end of the year." However, China's potential remains great.
Swatch Group remains listed on the stock exchange
Hayek rejects criticism from investors about the share price, which has been under pressure for years: "The share price has absolutely no effect on us. We are not and have never been dependent on the capital market. It may sound arrogant, but it's a fact: what financial analysts think or write about us fortunately has no influence on our operating business."
"If you are a shareholder with us, you can be sure that you are part owner of a company that is solid and will not get into trouble if a storm comes up," Hayek continued. The equity ratio is 86 percent, although the Group has neither brands nor any goodwill capitalized on its balance sheet. "What counts for us is the long-term development of the company, not the short-term nature of the share price."
Despite all the disputes with investors and financial analysts, Hayek still does not want to delist the Swatch Group from the stock exchange. "Unfortunately, going private is not possible without taking on massive debt. And we don't like debt at all."
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