WATCHES of Switzerland Group saw sales of used Rolex and other second-hand luxury watches double in the fourth quarter, helping it report better results than investors had feared.
The top seller of Rolex watches in the UK reported a 3 per cent increase in total sales to £380 million (S$647.4 million) in its fiscal fourth quarter ended Apr 28. Analysts expected £375 million.
The company said sales of used watches, including Rolex watches under the Swiss watchmaking giant’s ‘certified pre-owned’ programme, doubled in the period from the prior year. Sales of branded jewellery were also stronger than expected, the company said in a trading update on Thursday (May 16).
“Investors should cheer more resilient than feared fourth quarter sales,” Jefferies analyst James Grzinic wrote in a note, citing both results in the UK and US.
The company’s shares have more than halved in 2024 on concerns it could lose market share after Rolex bought rival watch retailer Bucherer, marking the top Swiss brand’s first significant move into selling its own products.
Watches of Switzerland warned earlier this year that sales would be weaker than anticipated as it wasn’t allocated as many gold and other precious metal watches from Rolex and as UK consumers turned more cautious.
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The company reiterated its long-term target of more than doubling sales and earnings before interest and taxes by 2028, and said it expects sales of £1.67 billion to £1.73 billion in 2025. Analysts had been expecting £1.65 billion. BLOOMBERG
