Breaking News: HYT gets new funding even as Richemont cuts jobs. The independent Hydro-Mechanical horologists and SIHH 2016’s newest exhibitor gained repute for their groundbreaking fluid display timepieces and now, also for their ability to raise $23 million in new investment funding.

Industry Round-Up: HYT gets New Funding, Swatch Group is up over 5% and Dominique Renaud hints to new independent watchmaking brand

On Feb 25, Nestle Chairman Peter Brabeck raised $23 million through a Swiss private asset management firm for independent hydro-mechanical watchmaker HYT and partner Preciflex. The amount of new capital for HYT during a period of market consolidation for independent watchmakers is as remarkable as the Grand Pix of Watchmaking winner’s fluid technology. Brabeck was joined in raising the new capital by HYT founders and current shareholders, it’s also noted that with the new funding, the asset management firm will also have a place on the board of directors.

HYT gets new funding and the new round of capital will be put towards research and development for new products (including thinner cases) over the next 36 months. It looks like HYT is literally and metaphorically that rare ray of light in these gloomy times.

They had initially targeted to raise $15 million in new capital but since exceeding the mark, it looks like there’s no stopping HYT now as they use the funding for research, development and production of new editions (including thinner models as fluid technology evolves) over the next 36 months.

Separately, former HYT collaborator Dominique Renaud announced the launch of his namesake brand with a 12 Limited Edition piece collection dubbed Dominique Renaud DR 01, joining other upcoming independent watchmakers, Czapek & Cie in making entry during the slowest performing period in recent watch history.

“The high-end segment was a bit more difficult.” – Swatch Group CEO Nick Hayek

Meanwhile, Swatch performed strongest amongst major watch conglomerates with January 2016 showing positive growth compared to the previous year, particularly in China during a time when the luxury industry is experiencing tepid performance in the Chinese mainland. Swatch Group expects growth well over 5% for 2016 in RMB currency thanks to strong performers, Omega, Tissot and Longines. In 2015 terms, the Group ended 0.9% lower with Net sales of CHF 8,451 million primarily due to exchange rates but in Euros, the Group was up 10.3%. 

Swatch Group CEO Nick Hayek probably feeling a little boss right now…

In contrast, it was reported in a Swiss newspaper that Richemont would be cutting up to 4% of its Swiss workforce, shedding up to 350 jobs.

“Overall, conditions remain challenging for retailers. Although sales have continued to grow and optimism has risen, expectations for sales growth are lacklustre and retailers are still wary of investing. And unreformed business rates are making it tougher for retailers to open up new shops on the high street.” – Rain Newton-Smith, the CBI’s director of economics

Even as HYT gets new funding, retailers surveyed by UK CBI found their optimism dampened by weak February figures leading to bearish sentiment. It looks like HYT is literally and metaphorically that rare ray of light in these gloomy times.

This is what a confident, absolute baller of a CEO looks like when he has raised new capital exceeding expectations.