Swarovski againts Covid-19: will lose a third of its sales this year

The Austrian cut glass company announced last June the dismissal of six hundred employees as part of its restructuring plan
Swarovski is facing a new era.

The Austrian cut crystal company will lose a third of its sales in the year, up to 2,000 million euros after the impact of the coronavirus and its restructuring plan, according to Bloomberg.

Luciano
Photo: Luciano

Among the company’s short-term plans, the possibility of going public on the stock exchange or of an alliance with a strategic partner to inject capital has not been ruled out. “It is very painful for everyone, but we have to take measures that we should have taken years ago,” said Robert Buchbauer, CEO of Swarovski.

The executive explained that the company needs to refocus, and to do so, get out of the multi-brand, where there is little margin. The group will also cut its network of physical stores, which exceed 3,000 points of sale. Swarovski will implement all these changes in a period of between two and three years.

Founded in 1895, Swarovski’s plans were to grow by 4 to 5 percent before the pandemic. Last year the company had a turnover of 2.7 billion euros and employs 29,000 people worldwide.

Author: Modae