Swatch Group posted a 9 percent fall in first-half net profit on Friday as the weak dollar and a loss on investments weighed, but gave a confident outlook due to demand in emerging markets.
The world's largest watchmaker said net profit before minorities fell to 418 million Swiss francs ($384.5 million), slightly above the average estimate of 411 million francs in a Reuters poll.
"Despite all the negative reports of the financial sector and the increase in costs worldwide, the group management still expects sales and profitability to show solid positive development in the second half-year," said the group, whose Omega brand is the official timekeeper of the Olympics.
Chief Executive Nick Hayek told CNBC that sales in August looked "sensational" again and he expected double-digit growth at the end of the year. He was also upbeat about the group's performance in the United States, which had seen double-digit sales growth in July. (Watch Video Below)
The company was hit by a financial loss as it wrote down the value of investments, which include an 8 percent stake in its Chinese retail partner Xinyu, whose shares have lost over 30 percent so far this year.