The benefits of Swatch affected by the crackdown on the gray market

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Swatch has announced a decline in its sales and profits as a result of a crackdown on unofficial sales of its watches and political turmoil in one of its most important markets, Hong Kong.

The owner of the Omega and Longines brands said his net profit fell by 11 percent to 415 million Swiss francs (£ 340 million) in the first half. Sales fell 4.4%.

Swatch has taken steps this year to prevent its watches from being sold at major discounts online.

This movement affected sales.

The company said it had taken "uncompromising measures" against dealers who sold watches to unauthorized retailers – often online watch sellers in Asia.

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Swatch has completely stopped supplying certain resellers and some have been warned of their activities.

The crackdown had cost him more than 100 million Swiss francs in sales, but Swatch said it would have long-term benefits.

In particular, the company fears that its brand is devalued because unauthorized retailers were selling its watches at very advantageous prices.

Impact of protest

Swatch also said that there had been a drop in Hong Kong's "double-digit" sales, which she blamed on "political turmoil".

Hong Kong has seen weeks of anti-government protests involving tens of thousands of protesters.

Hong Kong is the leading Swiss watch exporter and Swatch has described it as an "important" market with "attractive margins".

Swatch is optimistic about improving its commercial activity in the second half of the year, the planned launch of new products and the growth of online sales.