SWATCH GROUP (OP, TP CHF340.0): We are cutting our profit forecasts by an average 19%. Exports of Swiss watches are down 9% in value and 12% in volumes over Jan-Apr 2016. Last month, Richemont warned that near-term trading will remain challenging and reported April organic sales down 15%. Therefore, we are cutting our FY16e organic sales forecasts for Swatch Group to -4% from +2% with sales development being more 2H weighted. As a result of cost deleverage, we are reducing our FY16e/17e/18e earnings forecasts by 19%/19%/18% and cutting our TP to SFr340.