Swatch Group has reported annual profits of 1.12bn Swiss francs (£761m) in 2015, a 21% fall when compared with the previous year.
The company, which owns brands such as Calvin Klein, Blancpain, Tissot, Longines, Omega and Breguet, said the decline in profits was due to the “strong negative impact of foreign exchange losses and the negative development of interest rates”.
Net sales of 8.45bn Swiss francs (£5.74bn) for the group were down 0.9% compared with the previous year at constant exchange rates and 3% at current exchange rates. Meanwhile, total swiss watch exports declined 3.6% in 2015.
A statement from the group said: “Despite the dismal currency situation, Swatch Group continues its successful long-term strategy of increasing prices only very defensively to insure volume growth.”
As a result of the update, Swatch Group said it will be buying back shares up to a value of 1bn Swiss francs (£679m) during the period from 2016 to 2019.
The company said that it is expecting sales to pick up in 2016, with January showing positive growth compared with the previous year, particularly in China. It has predicted growth of “well over” 5% for the entire year in local currency.
The company added: “Group management expects, despite the ongoing challenging environment in various regions, a sustainable development in sales in local currency in 2016, based on worldwide ongoing very good consumption demand for Swiss watches.”