French designer Christian Dior, in collaboration with industrialist Marcel Boussac formed this iconic fashion house in late 1946. Success was quick for the talented 41 year old fashion designer. From designing for leading Hollywood stars, to his cover of 1957′s Time Magazine, Dior changed the face of fashion as we know it. The Dior group is now an international powerhouse, manufacturing fashion for men and women, acessories, fragrances, beauty products and fine jewelry. Along with other fashion-forward fine jewelry, the House of Dior produces a stunning collection of fine timepieces manufactured from technologically innovative materials.

These Dior Watches are true masterpieces. Along with all the other things made by the house of Dior In 1980, Dior releases the men’s fragrance “Jules”. After the Willot Group plummeted into bankruptcy in 1981, Bernard Arnault and his investment group stepped up and purchased it for “one symbolic franc” in December 1984. The Dior perfume “Poison” is launched in 1985. Arnault became Chairman, Chief Executive Officer, and Managing Director in 1985 as well. Upon leadership, Arnault did away with the mediocre textile operations of the company to focus only on the Bon Marché department store and Christian Dior Couture. Operations for Christian Dior drastically changed for the betterment of the company under Arnault. He repositioned the company as the holding company Christian Dior S.A. for the Dior Couture fashion business. On the fortieth anniversary of Christian Dior’s first collection, the Paris Fashion Museum dedicates an exhibition to him. In 1988, Arnault’s Christian Dior S.A.’s takes a 32% equity stake into the share capital of Moët-Hennessy • Louis Vuitton through its subsidiary Jacques Rober to create one of the most powerful leading luxury goods companies in the world. Under this milestone merger, the operations of Christian Dior Couture and Christian Dior Parfums were once again united. The Dior corporation states that the “share capital of Christian Dior is offered to French and foreign institutional investors who subscribe to a capital increase of . billion francs in a private placement.” Italian-born Gianfranco Ferré replaced Marc Bohan as head designer in 1989. The first non-Frenchman, Ferré left behind the traditions of flirtation and romance of Christian and Marc and introduced concepts that Kevin Almond for Contemporary Fashion calls “refined, sober and strict.” Ferré leads in the design of Haute Couture, Haute Fourrure, Women’s Ready-to-Wear, Ready-to-Wear Furs and Women’s Accessories collections. His first collection is awarded the Dé d’Or in 1989. Also, a boutique is opened in Hawaii and the LVMH stake by Jacques Rober rises to 44%. Further more Dior boutiques were opened in 1990 in upscale New York City, Los Angeles, and Tokyo shopping districts. The stake in LVMH rises again to 46%. Another collection of watches named “Bagheera” — which were inspired by the round design of the “Black Moon” watches — is released in 1990, too. When Arnault fired managing director Beatrice Bongbault in December 1990, he took up the position until September 1991 when he placed former Bon Marché president Phillipe Vindry in the post. In 1991, Christian Dior is listed on the spot market and then on the Paris Stock Exchange’s monthly settlement market. The perfume “Dune” is launched in 1991, too. Vindry dropped ready-to-wear priced down 10%. Still, a wool suit from Dior came labeled with the price of $ ,500 USD. Sales nevertheless were raised to a great 50% at the headquarters store from 1990 to 1991. Revenue for Dior was $129. million USD in 1990 with a net income of $22 million. He also reorganized Dior into three categories: ) Women’s ready-to-wear, lingerie and children’s wear ) accessories and jewelry ) menswear. Licensees and franchised boutiques were starting to be reduced so that the Dior company could solely control these aspects. Licensing was nearly reduced by half because Arnault and Vindry opted “for quality and exclusivity over quantity and accessibility.” Wholly company-owned boutiques were opened in Hong Kong, Singapore, Kuala Lumpur, Cannes, and Waikiki “to its core stores located in New York City, Hawaii, Paris, and Geneva. This held out the potential to increase direct sales and profit margins while maintaining high-profile locations.” Dior Homme is placed under the Artistic direction of Patrick Lavoix in 1992 and the “Miss Dior” perfume is relaunched. Francois Baufume succeeded Vindry in 1993 and continued to reduce licenses to the Dior name. The Christian Dior consolidated stake in LVMH increases from 24. % to 41. % after a revised agreement with Guinness.

The production of Dior Haute Couture is spun-off into a subsidiary named Christian Dior Couture in 1995. Also, the “La Parisienne” watch model is released — embodied in the watch, “Parisian Chic”. By that year, revenue for the label increased to $177 million USD with a net income of $26. million USD. CEO Arnault appointed British designer John Galliano to replace Glanfranco Ferré in 1997. Arnault was said to have had “ruffed some French feathers” for the choice of a British designer instead of a French one. The Dior CEO stated that he “would have preferred a Frenchman,” but “talent has no nationality.” He even compared Galliano to Christian Dior by noting that “Galliano has a creative talent very close to that of Christian Dior. He has the same extraordinary mixture of romanticism, feminism, and modernity that symbolizes Mr. Dior. In all of his creations–his suits, his dresses–one finds similarities to the Dior style.” Galliano sparked further interest in Dior with his rather controversial fashion shows: “Homeless Show” (models dressed in newspapers and paper bags) and “S&M Show”. Licenses were further diminished by president and CEO Sidney Toledano. On October 15, 1997, the Dior locaiton on Avenue Montaigne is reopened — it had been closed and remodeled by Peter Marino — in an event celebrity-studded event including Nicole Kidman, Demi Moore, and Jacques Chirac. Christian Dior Couture took up all 13 boutique franchises from Japan’s Kanebo in 1997. The Dior Spanish distributor is acquired in 1998 in an effort to enforce its new policy of strict Dior “franchise and licensed retail network.” Next, Christian Dior Couture takes over the direct marketing of ready-to-wear and women’s accessories in Japan after terminating its licensing agreement with Kanebo.”

In May 1998, another Dior boutique is opened in Paris. This time, the location opened doors on the Rive Gauche in the Place Saint-Germain-des-Prés. Also in this year, Victoire de Castellane becomes the Designer of Dior Fine Jewelry and the first Dior Fine Jewelry boutique is opened in New York City. Paris witnesses the opening of the first Parisian Dior Fine Jewelry boutique in 1999 on 28 Avenue Montaigne. The perfume “J’adore” is released in 1999. On October , 1999, Galliano releases the Dior Spring-Summer 2000 ready-to-wear fashion show debuting the new Saddle bag. In the year as well, Dior’s long watch partner Bemedom joins the LVMH group.

On July 17, 2000, Dior Homme designer Patrick Lavoix is replaced with Mr. Hedi Silmane. The unique “Malice” watch, which features bracelets made of “CD” links is released in 2000 and becomes a best selling accessory. The very fashionable “Riva” watch is also released.

[edit] Onward into a new century
The Dior flagship boutique in the upscale Ginza shopping district of Tokyo. First opened in 2004.

In 2001, the Dior Homme boutique on 30 Avenue Montaigne reopened with a new “contemporary masculine concept” instilled by its designer Mr. Hedi Silmane. Silmane used this concept in the creation of his first Dior Homme collection. Soon, Dior Homme gained prominent male clientele including Brad Pitt and Mick Jagger. On June , 2002, Dior Homme designer Hedi Silmane was presented with the “International Designer of the Year” award by the CFDA.

Dior opened the first Dior Homme boutique in Milan on February 20, 2002. By 2002, 130 locations were in full operation. A second flagship boutique from Christian Dior was opened in the upscale Ginza shopping district of Tokyo in 2004. An exclusive Dior Homme boutique was opened in 2004 in Paris on Rue Royal, presenting the entire Dior Homme collection. A second Dior Fine Jewelry boutique in Paris was opened at Place Vendôme. Bernard Arnault, his wife, Chloé Sivigny, and Sidney Toledano witnessed the opening of the Dior flagship boutique in the Omotesando district of Tokyo on December , 2003. A Christian Dior boutique was opened in Moscow after the company took control of licensed operations of its Moscow agent.

The men’s fragrance “Higher” was released in 2001, followed by the perfume “Addict” in 2002. The “Miss Dior Chérie” perfume and the “Dior Homme” fragrance were released in 2005.

Galliano began to release his own Dior watches in 2001, beginning with the “Chris 47 Aluminum” line, marking a new era in Dior watch design. Next, the “Malice” and “Riva” watches were redesigned with precious stones to create the “Malice Sparkling” and “Riva Sparkling” spin-off collections. Inspired by the Spring-Summer 2002 Ready-to-Wear collection, Dior released the “Dior 66″ watch, breaking many feminine traditional expectations in design. The “Chris 47 Steel” watch was released in 2003 as a cousin of the original “Chris 47 Aluminum”. The designer of Dior Fine Jewelry Victoire de Castellane launched her own watch named “Le D de Dior” (French: “The D of Dior”). signifying the entrance of Dior watches into its collection of fine Jewelry. This watch was designed for women but made use of many design features which are typically thought of as masculine. Silmane next released a watch for the Dior Homme collection called “Chiffre Rouge.” This special watch included the signature look of Dior Homme: “Watch design and technology match each other inseparably, to create the perfect expression of Dior Homme’s artistic excellence and to increase the watchmaking legitimacy of Dior timepieces.” Fine Jewelry designer de Castellane launched her second line of watches called “La Baby de Dior”. The design for this line was meant to be more feminine with more of a “jewelry look.” Christian Dior S.A. celebrated the 13th anniversary of Dior Watches in 2005, and, in April of that year, its “Chiffre Rouge” collection was recognized by the World Watches and Jewelry Show in Basel, Switzerland. In 2005 the fashion house also celebrated the 100th anniversary of the birthday of designer Christian Dior. An exhibition, “Christian Dior: Man of the Century,” was held in the Dior Museum in Granville, Normandy. Also in 2005, Galliano released his “Dior Christal” watches in which he combined steel and blue sapphires to create a “creative and innovative collection.”

In 2006, the Dior watch booth was dedicated to the Dior Canework. This pattern was made by designer Christian Dior and based on the Napoleon III chairs used in his fashion shows. Dior Homme received a new Artistic Director in 2007, Kris Van Assche, who presented its first collection later that year. The 60th Anniversary of the founding of the Maison Dior was officially celebrated in 2007 as well. Currently, Dior is featured in countless high-fashion magazines, more prominently Vogue, and advertises its popular Christian Dior Cosmetics and Parfums via prominent fashionistas and models.

Here we have the latest cure for the economic down turn. A phone made of pure gold by Vertu. You know how you can tell that this is a “luxury” phone? It looks like it was shaped by an overly taut sphincter. The Vertu Boucheron 150 is made from “solid gold” and is meant to celebrate the 150th anniversary of the Boucheron jewelry house in Paris. According to the designer, it took 1,000 hours to cut into shape, 700 hours to hand polish, and more than 500 hours to build.

Back with another Luxury cufflink post! They are our Luxury Watches best and dearest neighbor so why not here in our Luxury Watch Blog also! A new cufflink design we will be looking at today is Mesh Cufflinks Classy and intriguing. Here have a look!

Amongst the technical masterpieces of 21st century jewelery are Knot Cufflinks . An Engineering masterpiece Just look! 

We have decided that Luxury Watches are great to talk about but a matching pair of Cufflinks always suits a powerful man. Now there are many designs of Luxury cufflinks but one that i feel is quite interesting is X Cufflinks There exciting design and bold appearance are breathtaking. Here take a look

In order to understand Luxury Watches we must also look into Luxury Goods

Certain manufactured products attain the status of “luxury goods” due to their design, quality, durability or performance that are remarkably superior to the comparable substitutes. Thus, virtually every category of goods available on the market today includes a subset of similar products whose “luxury” is marked by better-quality components and materials, solid construction, stylish appearance, increased durability, better performance, advanced features and so on. As such, these luxury goods retain or improve the basic functionality for which all items of a given category are originally designed.

There are also goods that are perceived as luxurious by the public simply because they play a role of status symbols as such goods tend to signify the purchasing power of those who acquire them. These items, while not being any better (in quality, performance, or appearance) than their less expensive substitutes, are purchased with the sole purpose of displaying wealth or income of their owners. These kinds of goods are the objects of a socio-economic phenomenon called conspicuous consumption and commonly include luxury cars, expensive watches and jewelry, designer clothing, yachts, and large residences such as McMansions, urban mansions and country houses.

Market characteristics

Some luxury products have been claimed to be examples of Veblen goods, with a positive price elasticity of demand: for example, making a perfume more expensive can increase its perceived value as a luxury good to such an extent that sales can go up, rather than down.

Although the technical term luxury good is independent of the goods’ quality, they are generally considered to be goods at the highest end of the market in terms of quality and price. Classic luxury goods include haute couture clothing, accessories, and luggage. Many markets have a luxury segment including, for instance, cars, wine, and even chocolate.

Luxuries may be services. The hiring of full-time or live-in domestic servants is a luxury reflecting disparities of income. Some financial services, especially in some brokerage houses, can be considered luxury services by default because persons in lower-income brackets generally do not use them.

Luxury brands

Armani is an example of a luxury brand for clothing.

A luxury brand or prestige brand is a brand for which a majority of its products are luxury goods. It may also include certain brands whose names are associated with luxury, high price, or high quality, though few, if any, of their goods are currently considered luxury goods. The automobile manufacturer Hummer is an example of such a brand, as a Hummer automobile is considered a status symbol, even though none of the vehicles in the Hummer line-up meet the requirements to be classified as a luxury car.

Another market characteristic of luxury goods is their very high sensitivity to economic upturns and downturns, high profit margins as well as prices, and very tightly controlled brands. Other guidelines may apply to certain luxury markets such as the luxury vehicle market.

For example, following a nearly crippling attempt to widely license their brand in the 1970s and 1980s, the Gucci brand is now largely sold in directly-owned stores. The Burberry brand is generally considered to have diluted its brand image in the UK in the early 2000s by over-licensing its brand, thus reducing its cachet as a brand whose products were consumed only by the elite.

LVMH (Louis Vuitton Moet Hennessy) is the largest luxury good producer in the world with over fifty brands, including Louis Vuitton, the brand with the world’s first designer label. The LVMH group made a profit of €2bn on sales of €12bn in 2003. Other market leaders include PPR (after it purchased the Gucci Group) and Richemont.

From the perspective of the consumer of luxury goods (those who can afford the ultimate luxuries), seeking those luxury items not generally offered to the general public is what drives them to certain brands. Luxury brands usually do this by offering different product lines: one that is geared toward affluent consumers who also tend to buy from less “luxurious” brands, and more “exclusive” product lines which are geared toward the really affluent consumer who makes their purchases based on the degree of exclusivity a certain product can afford them. The latter group constitutes an “elite”. A rather small group in comparison, they tend to be extremely influential. Once a brand gets an “endorsement” from members of this group, then the brand can be defined as a true “luxury” brand.

Examples include (in alphabetical order): Giorgio Armani, Balenciaga, Hugo Boss, Marcela Calvet, Cartier, Coco Chanel, Ocar de la Renta, Christian Dior, Escada, Fendi, Salvatore Ferragamo, Gianfranco Ferre, Givenchy, Hermes, Carolina Herrera, Ralph Lauren, Missoni, Moschino, Miuccia Prada, Valentino, Versace, Louis Vuitton Movado.

Importance of advertising for luxury brands

There is an important balance of emotional and rational communications when a luxury brand connects to its customers through a variety of brand advertising. Historically, luxury brands, especially fashion brands, use heavy visual aids to help foster a sense of emotional connection – a state of being or sense of being. The status of owning luxury brands is important for the affluent or high net worth consumer, as they feel it expresses their class or self-expression. Advertising also ensures that other people who cannot afford the luxury item are nonetheless aware of its expense, which is essential to conferring the status that the consumption of luxury promises. In other cases, luxury brands can connect to the consumer on a very rational level focusing on purpose or function, such as owning a plane or a private jet, or a fractional owner.

Baselworld Watch and Jewelry Show is a trade show for the watch and jewelry industry organized annually in the city of Basel, Switzerland. The international show unites about 2,100 exhibitors from over 45 countries, including the leading watch and jewelry brands, as well as companies specializing in precious gems. The exhibitors display their latest products to the industry’s experts, mass media representatives, watch collectors and connoisseurs, just everyone interested in the most recent industry novelties.

Visitors of the show get acquainted with an exclusive range of products. The exhibition area covers more than 160,000 m2 with different halls situated on several floors. Products are divided in specialized sectors placed in six exhibition halls – Hall of Universe, Hall of Elements, Hall of Visions, etc. The Baselworld management takes care of updating the halls’ design.. In 2007 the Hall of Dreams has been entirely redecorated.

Watch and jewelry companies and other brands related to the industry exhibit their products in their own halls. Baselworld also comprises national pavilions. The show provides a thorough market overview and offers the participants a suitable business platform for discovering new opportunities and finding new partners. Baselworld traditionally takes place in spring. The show attracts over 94,000 visitors, with retailers and wholesalers from different parts of the world. Show visitors get surrounded by business and networking atmosphere and become aware of the latest industry trends and innovations.

BaselWorld Village

The event’s participants may also visit the Baselworld Village located in the neighborhood. The ‘village’ provides special facilities, including bars and restaurants, lounges and outdoor areas where partners may discuss their business matters in a cozy atmosphere. The Baselworld Village is open every evening from 6 pm to 2 am during the exhibition. To visit the ‘village’, the show participants have to take a 10-minute journey by taxi, tram or bus.

History

The history of the show dates back to 1917 when there was established the first ‘Schweizer Mustermesse Basel’(MUBA in short) with a special section devoted to watches and jewelery. In 1925 MUBA organized the show which included several watch manufacturers, while in 1931 there appeared the first ‘Schweizer Uhrenmesse-Swiss Watch Show’ in a specialized pavilion. The year 1972 marked an important event in the history of the exhibition – MUBA held ‘Europe’s meeting place’ exhibition which gathered the companies from France, Italy, Germany, and United Kingdom.

In 1983 the show changed its name – it was called BASEL plus two numerals denoting the exhibition year – BASEL 83. Basel 86 included companies from outside Europe, having resulted in the increased number of visitors coming from outside Europe.

In 1995 the show once again officially changed its name for ‘BASEL 95 – The World Watch, Clock and Jewelry Show’. In 1999 the history of BaselWorld was highlighted by the official opening of the new Halle 1, covering 2 x 18,000 m2. The show was organized on three newly designed floors of the exhibition building. Basel 2000 marked the increase of 6 per cent in trade visitors. The show comprised two innovative features – the Basel Award and the Basel Forum.

The year 2003 witnessed the further step in the exhibition’s development – there appeared a new corporate identity – BaselWorld, The Watch and Jewelry Show. The new name and image were introduced as an essential part of a three-year strategic development project for the show. BaselWorld gained the position of the leading world show in the luxury goods industry.

We are wondering what Movado is going to unveil this year!

In 2004 there was built a new hall complex onto Halle 5. The Hall of Universe comprised the national pavilions. The exhibition area extended to 160,000 m2, having attracted more than 89,000 visitors. In 2005 the Hall of Elements is redesigned, having presented multi-storey stands for exhibiting precious stone, diamond and pearls sector. In 2006 the Baselworld featured new ‘First Avenue’ in the Hall of Visions. The Baselworld 2007 takes place from 12 to 19 April.

Often agonize about what to wear for a night out on the town. But my invitation to observe the Watch Enthusiasts of New York monthly meeting proved especially challenging. This secret society of New York watch collectors known as “The Weenies” (after their WENY acronym) is one of the most exclusive in the watch world. What kind of timepiece can I wear that won’t make me stand out like a bumpkin at a debutante’s ball?

Since my own watch collection is pretty limited—think Swatch, Ebel, Movado, as well as the Polar wristwatch that goes with my heart-rate monitor—I end up borrowing my mom’s classic Rolex, a blue dial with an 18-karat gold-and-steel band from the 1980s. Believe me, the Weenies notice. Wrist-gaping is the main activity at a Weenie meeting.

Formed by two watch lovers in 2005, each monthly Weenie gathering is a movable feast with a prix fixe dinner at a different location, typically a New York City restaurant or bar. Sure, you’ll find hedge-funders and real estate moguls among the 32 members, but the roster also includes a Malaysian artist, an engineer, and an acupuncturist. While a few wives and girlfriends tag along at meetings, there are only two female members.

Nearly all of the Weenies met online at the Web sites, TimeZone , WatchUSeek and The Purists. (Some have since migrated to HoroMundi.) Membership is by invitation only, but you don’t have to own a ginormous collection. What you do need is an appreciation of watches as an art and craft. “We prefer watch geeks to watch snobs,” says co-founder Paul, 31, an engineer who, like most members, asked to be identified by his first name. “A lot of watch guys are a little tightly wound,” says Matthew Morse, a club member and editor of Revolution magazine, a watch bible. “But this is a group of genuinely nice people.”

I don’t understand why the Weenies insist on a shroud of secrecy until I meet them: These guys collectively are packing at least $1 million worth of bling on their wrists, including a beefy limited edition F.P. Journe Chronomètre à Résonance ($100,000 and up), which has a platinum bracelet and is as heavy as a brick.

Aside from an occasional watch gathering, these collectors do not wear their most highly prized timepieces in the real world because the wear and tear can diminish the value. And because they keep them in safe deposit boxes, many Weenies do not insure their watches, except for their rarest timepieces. With no private security at club events, they like to keep their profiles off the radar.

OOHS AND AHS
So what makes a Weenie tick? “We are weenie-ish in our unbridled pursuit of something other people don’t pay much attention to,” explains Gene Stone, a club member and author of The Watch, a book about collecting. These geeks focus on the nitty-gritty of vintage and modern watches: the faces, hands, movements, weight, and other fine details.

Like connoisseurs, they speak in a language of their own. Conversation is peppered with millimeters (the size of the face), tourbillon (a device that helps regulate the watch), guilloche (decorative engraving), and other technical terms. Their descriptions are entertaining. Vincent, 48, a hedge fund manager and the group’s other co-founder, breathlessly describes watches he admires as “stealthy,” with “sensual curves” and an “immaculate finish.”

At most meetings, the members just chat informally about watches. The other main activity is taking off watches and passing them around. Sometimes the Weenies invite special guests to speak. The night I attend a meeting at the New York Wine Co. in lower Manhattan, Julien Tornare, North American president of the storied Swiss watchmaker, Vacheron Constantin, shows off some new models. As the members dine on braised short ribs with creamy polenta, they “Ooh” and “Ah” over a PowerPoint presentation of new models. A highlight is the $130,000 Patrimony Skeleton Perpetual Calendar, which is transparent. You can see the innards ticking away—hence the name Skeleton. Although many of the Weenies look like average Joes in Oxford shirts and khakis, the clout of the collectors in the room is clear: This is only the second time these watches have been seen in public since they were introduced at a Geneva watch fair in April.

Many Weenies wear their own Vacheron Constantin timepieces, including Vincent, who sports a Skeleton Automatic in yellow gold. He ticks off the preferred brands of other members. Michael, a fifty something real estate developer and software entrepreneur, favors Officine Panerai, an Italian brand known for oversized faces. Michael keeps photographs of every piece in his massive collection of more than 400 watches, worth more than $5 million, on his Palm Pilot.

Brad, 36, an investment manager, collects F.P. Journe, one of the few super-high-end watchmakers that is not owned by a luxury goods conglomerate. When I get a chance to chat with Brad, he explains that he is in awe of the technology of Journe watches; the one he is wearing uses two independent movements that feed off each other’s energy. “Francois-Paul Journe is a modern-day genius in the world of horology,” he says of the company’s founder.

Bigger, more established manufacturers are also represented in these collections. Paul, who owns about 125 watches, says his primo treasure is a 1954 Rolex “Kew A” Observatory Chronometer, one of three in the world known to exist in original condition (out of 24). “Finding it occupied a year of my life,” he says.

Paul purchased his prized Rolex through Watch Commander, a vintage dealer in Miami. Before they buy, the club members often research models on TimeZone or The Purists forums; then they make their purchases through dealers, other club members, or at auction. Sometimes they even travel to Switzerland to buy directly from the manufacturer.

While they collectively own more than 1,000 watches, some of their most prized treasures include the trio above.

Adam, who owns a medical-supply company, explains why he is watch-obsessed. “We are surrounded by so much technology. Everything is digital,” Adam says. “When I need to relax, all I do is watch this tick.” He owns 15 watches, although he estimates he has bought and sold 35 more. “I’m a watch lover,” Adam says. In fact, when a female guest admires his Vacheron Constantin Overseas Chronometer in stainless steel with a white face ($11,000) and mentions she would like to buy one for her husband, Adam doesn’t miss a beat. He takes the watch off his wrist and says, “Want to buy this one?”

Swatch reported an almost 40 percent rise in first-half net profit amid booming sales of luxury watches and warned that strong demand in the second half could outstrip production.

Shares in the world’s biggest watchmaker rose on Tuesday after it beat expectations with net profit of 460 million Swiss francs ($385.3 million) for the first six months.

“Overall consensus now looks clearly too low for the year, and we anticipate a slew of upgrades on the stock during the session,” said Kepler Equities analyst Jon Cox, who has a “buy” rating on the stock and a target price of 420 francs.

Swatch registered shares were up 2.9 percent at 350 francs by 0812 GMT, compared with a 0.7 percent decline in the Swiss benchmark index.

The company has benefited rising demand for its high-end watches as part of a worldwide boom for luxury goods, including new consumers from China.

Gross sales rose 16.4 percent when adjusted for exchange rate fluctuations to 2.739 billion francs. In actual currencies, sales were up 16.7 percent, boosted by the strength of the euro.

Swatch Group said expectations for the second half of the year were high, although a lack of skilled labour and production capacity could cause bottlenecks.

“In view of the sustained positive mood among consumers worldwide, there is every indication that the current boom will continue,” the company said.

However, it added: “Capacity bottlenecks in many of the group’s production companies will pose major challenges to management in the second half-year.”

LUXURY DRIVERS

Sales in Swatch Group’s core watch and jewellery business rose 20 percent, driving an overall increase in turnover.

Swatch Group, which sells watches and jewellery under 18 marques, said luxury brands such as Breguet, Blancpain and Omega showed particularly strong growth, while its core Swatch brand also reported a double-digit percentage sales increase.

The firm’s production segment, which makes mechanical movements for other watchmakers, reported a sharp increase in its operating profit margin to 14.8 percent from 9.8 percent, due to a change in its product mix.

However, its Electronic Systems segment was hit by increasing price pressure on mobile phone components.

Swatch ramped up spending on marketing across the world in the first half, it said. In particular, it increased its presence in China, Russia and the United States.

At home, Swatch said it was planning to tackle production bottlenecks and was setting up watchmaking schools in order to plug the gap in its workforce.