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Reuters
Published
Aug 29, 2011
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Watchmaker Hublot to hike prices over franc

By
Reuters
Published
Aug 29, 2011

August 29 - Swiss watchmaker Hublot is being forced to hike its prices for pieces sold abroad because of the steep rise in the franc, the company's chief executive told a German magazine.

Hublot
Hublot Watches

Hublot, part of French luxury goods group LVMH, is still considering when to raise the prices, Jean-Claude Biver told WirtschaftsWoche.

"Unless there is a miracle and the franc becomes cheaper, then we will have to raise our prices in foreign countries step-by-step," Biver said, according to a preview of the magazine's Monday edition.

"The question is only whether we raise the prices in three months' time or in a year," he said.

The franc, which the Swiss National Bank calls "massively overvalued" has soared to record highs against the dollar as investors nervous about the global economy pile into "safe haven" assets.

Despite currency pressure, Biver said he still expected Hublot and its Swiss peers to make record profits this year "with a little bit of luck."

"In the past few months (Hublot has) seen an almost 30 percent rise in sales compared to our record year 2010," he said.

Hublot and rival Piaget already said in June that they planned to raise prices by around 10-15 percent in 2011 due to higher raw material costs and currency fluctuations.

Hublot watches, which cost on average about 19,000 euros ($27,283), are known for their bulk and use of high-tech material such as carbon fibre. The brand sells around 30,000 watches a year.

(Reporting by Sylvia Westall; editing by Keiron Henderson)

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