Swatch CEO Nick Hayek said the U.S. faces a weak market due to sluggish local consumption, the Fly reports.
The Swiss watchmaker recently reported preliminary results for the first half of 2016, including a 12% sales decline and 50% drop in earnings. The shortfall could possibly be attributed to lower sales in Hong Kong and parts of Europe, Hayek noted.
Hayek also predicts that the tragic attacks in Nice on Thursday will further weigh on sales estimates, Bloomberg reports. Swatch is slated to report its first-half earnings by July 21.
Richemont (CFR) is also anticipating a weak first half. Shares of the luxury watchmaker closed down 3.08% to $58.15 on Friday.
Swatch stock closed down 7.77% to $13.59 Friday afternoon.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate FOSSIL GROUP INC as a Sell with a ratings score of D+. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.