WATCHES of Switzerland Group is buying Hodinkee, a US watch enthusiast site backed by LVMH and Tom Brady that racked up losses after an ill-timed foray into selling used models online.
The British company, which is the top seller of Rolex watches in the country and a major retailer in the US, said the deal will help capture market share, particularly online in the US, according to a statement on Friday (Oct 4). Financial terms were not disclosed.
The sale marks an end to New York-based Hodinkee’s troubled entry into online used watch sales. Founded in 2008, the company produces content on watches as well as selling watch and jewellery insurance. Its website attracts 22.2 million annual unique visitors and has over one million social media followers, the companies said in the statement.
The company raised about US$40 million in 2020 from investors including retired football star Brady, musician John Mayer, and Bernard Arnault’s LVMH Luxury Ventures.
The following year, Hodinkee made the move into selling watches by purchasing US online seller Crown & Caliber during a surge in prices for used luxury watches. The deal lifted annual revenue above US$100 million.
The online retail business, however, proved to be a loss-maker. After used watch prices began falling sharply in April 2022, Hodinkee moved to restructure operations and cut jobs.
Hodinkee founder Benjamin Clymer, a former UBS Group banker, said in July that the influential website would phase out online sales of new and used watches while continuing to sell watch insurance and limited editions in collaboration with major brands.
Hodinkee’s online retail commercial activities, including limited edition collaborations, will be directed to Watches of Switzerland’s US e-commerce site, the companies said on Friday. It will also integrate the functions behind Hodinkee’s insurance agency business. BLOOMBERG
