At Swatch Group, net sales have increased by 8.6 percent to CHF 2.82 billion ($2.58 billion) for the six months ending June 30, 2008. Individually watches and jewellery garnered an increase in net sales of 17.7 percent and production of 11.6 percent. %% The global markets have cumulatively contributed to the increase. Sales of watches and jewellery increased in Asian and American markets by double-digit in local currencies, while in Europe sales peaked slightly above the double-digit mark. Operating profits grew 16 percent to CHF 593 million ($541 million.) %% Net income did not catch up with the net sales growth, as it dipped by 9 percent to CHF 418 million ($381 million). This was attributed to a downturn in the company’s investment in China’s largest watch retailer. The company holds 8.1 percent stake in the Hong Kong-listed watch distributer, Xin Yu Hengdeli, which faced a loss of 30 percent on its share value in the six months, owing to the slump in the stock market and global economy. However the company is certain the loss will be overcome with improved sales in the rest of 2008, despite the challenging economic environment.