Tissot still going stong in downturn

Hayek said he was confident 2009 sales would be flat in local currencies as demand for its watches, including its luxury brands, has improved, with demand in May and June higher than the previous year.

Swatch Group, makers of Tissot was being helped by the fact that stock of its watches at retailers was lower than for rivals, so shops were having to order more inventory.

Demand for Swiss watches has fallen sharply as customers worry about the economy and their jobs. Swatch Group component maker Universo is introducing shorter working hours from September.

"Universo makes over 50 percent of its sales (by supplying) third parties. They already cut back massively on orders in February," Hayek said.

Universo, which makes hands for Richemont's Cartier watches, will introduce shorter working hours for around 280 of its 350 employees and is making employees take three weeks holiday this summer.

It was difficult to tell whether other businesses at Swatch Group would also have to cut working hours, he said, though no job cuts were planned.