Swatch Group

[superdog]

Wow. Shares down 10% and they are warning that their upcoming earnings report is going to be bad.

[GB-man]

Doesn't surprise me. Low end market eaten up by smart watches and high end is soft with their brands. I have never seen someone purchasing a breguet or blancpain at the AD and was just in the Madison ave bp boutique and was the only soul inside. This was Saturday around noon!

[RW16610]

Oh man, tough times. No wonder they decided to still supply ETA movements to other companies. I'm interested to see how they'll try get out of this.

[Kingair]

Not good but it will pick up again

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[KarlS]

60% drop in earnings!!! Eeeew...Richmont with bad news last month and Swiss franc still strengthening going to cause loads of pain!

[Rolex addict]

I wonder if this is due to the smart watch coming out? Most of the people I know who can't be separated from their phone have an iwatch. If I didn't need to get email from my phone for work, I would go back to a flip phone.

[rr-nyc]

Has very little to do with smart watches and a lot to do with a volatile economy. Economies in China, Russia, and Brazil. Add the EU in the mix and not a lot of big spending lately or in the near future

[TheBluePrince]

Tough times but Swatch are to be commended for committing to keeping their staffing levels at the same level (i.e. not laying anyone off) no matter what turns the market takes. How long they can stick to this though is questionable.

[subtona]

They should probably capture a few Pokemon.

[Etschell]

Originally Posted by TheBluePrince

Tough times but Swatch are to be commended for committing to keeping their staffing levels at the same level (i.e. not laying anyone off) no matter what turns the market takes. How long they can stick to this though is questionable.

as a public company that is a disservice to their shareholders. in fact it is somewhat of a violation of their fiduciary duty to earn the highest profit attainable. layoffs will occur.

[Lordofrolex]

Originally Posted by GB-man

Doesn't surprise me. Low end market eaten up by smart watches and high end is soft with their brands. I have never seen someone purchasing a breguet or blancpain at the AD and was just in the Madison ave bp boutique and was the only soul inside. This was Saturday around noon!

I don't know how those companies survive. My mother has a breguet watch she got about 10 years ago. I shake my head when looking at it. The resale value on it is 60-70% off the original price. Even with that price it would be hard to sell. No one wants those brands. You have to be a serious collectior to want to acquire those brands over lets say a rolex, AP, PP, Hublot, Cartier, Panerai, Omega, Breitling ect

[GB-man]

Originally Posted by Lordofrolex

I don't know how those companies survive. My mother has a breguet watch she got about 10 years ago. I shake my head when looking at it. The resale value on it is 60-70% off the original price. Even with that price it would be hard to sell. No one wants those brands. You have to be a serious collectior to want to acquire those brands over lets say a rolex, AP, PP, Hublot, Cartier, Panerai, Omega, Breitling ect

I wouldn't say nobody wants them. But I wouldn't want to have to eat what I kill selling them at an AD. Problem is joe blow has never heard of blancpain and probably breguet as well. No aggressive marketing budget to support the brand.

Come to think of it, outside Rolex and omega most boutiques I've visited are empty for the most part. Not sure these watch companies have enough marketing driven demand to warrant a boutique the way Rolex and for example major fashion houses like LV Chanel etc do.

With that said, I do enjoy the boutique experience so long live the boutique

[RationalPragmatist]

Yeah, not good at all and Omega is 'branching out' into sunglasses:

http://www.reuters.com/article/swatc...-idUSL8N19S39E

A pair of sunglasses with your Moonwatch sir?

[superdog]

Originally Posted by rr-nyc

Has very little to do with smart watches and a lot to do with a volatile economy. Economies in China, Russia, and Brazil. Add the EU in the mix and not a lot of big spending lately or in the near future

I think you are exactly correct.

[TheBluePrince]

Originally Posted by Etschell

as a public company that is a disservice to their shareholders. in fact it is somewhat of a violation of their fiduciary duty to earn the highest profit attainable. layoffs will occur.

True and I did consider that but loyalty and honour goes a long way and that's something customers will respect too in better times.

[ref1655]

Originally Posted by RationalPragmatist

Yeah, not good at all and Omega is 'branching out' into sunglasses...A pair of sunglasses with your Moonwatch sir?

don't kid yourself. if Rolex came out with their own brand of boutique sunglasses, the chances are a sizable number of people would buy them & we'd probably never hear the end of it...with countless numbers of inane 'see me with my Submariner & Oyster shades' threads/posts.

[rr-nyc]

Originally Posted by Lordofrolex

I don't know how those companies survive. My mother has a breguet watch she got about 10 years ago. I shake my head when looking at it. The resale value on it is 60-70% off the original price. Even with that price it would be hard to sell. No one wants those brands. You have to be a serious collectior to want to acquire those brands over lets say a rolex, AP, PP, Hublot, Cartier, Panerai, Omega, Breitling ect

Most people do t buy watches or any other consumer good thinking about its resale value. I buy watches regardless of resale but It just so happens to be a bonus that Rolex keeps much of it value.


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[Etschell]

Originally Posted by TheBluePrince

True and I did consider that but loyalty and honour goes a long way and that's something customers will respect too in better times.

unfortunately the customers and shareholders are two different groups of people (generally).

[TheBluePrince]

Originally Posted by Etschell

unfortunately the customers and shareholders are two different groups of people (generally).

Yep and getting more so.

One huge advantage Rolex has is that it's still private.

[Abdullah71601]

Originally Posted by ref1655

don't kid yourself. if Rolex came out with their own brand of boutique sunglasses, the chances are a sizable number of people would buy them & we'd probably never hear the end of it...with countless numbers of inane 'see me with my Submariner & Oyster shades' threads/posts.

They are giving away the trinkets now (coffee mugs, chocolates, etc.). If they sold that stuff it would saturate very quickly. Better I think that it remains a reward, not a profit opportunity.

[Star Ferry]

Originally Posted by GB-man

I wouldn't say nobody wants them. But I wouldn't want to have to eat what I kill selling them at an AD. Problem is joe blow has never heard of blancpain and probably breguet as well. No aggressive marketing budget to support the brand.

Come to think of it, outside Rolex and omega most boutiques I've visited are empty for the most part. Not sure these watch companies have enough marketing driven demand to warrant a boutique the way Rolex and for example major fashion houses like LV Chanel etc do.

With that said, I do enjoy the boutique experience so long live the boutique

There is a huge Blancpain boutique in the heart of Central, HK. I can't imagine that they are making money there. I suppose it's intended to create brand awareness.

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[Ruud Van Driver]

A lot of the high-end boutiques here in Singapore don't seem to be empty when I pass them by.

[bayerische]

I have a feeling the watch-craze we have seen during the last ten years or so is slowing down.

Trends go up and down. I know my watch interest has been slightly subdued. Mostly to the outlandish used-watch pricing, and low availability of some pieces.

[GB-man]

Originally Posted by Star Ferry

There is a huge Blancpain boutique in the heart of Central, HK. I can't imagine that they are making money there. I suppose it's intended to create brand awareness.

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Same in NYC. I'm predicting the shift to boutiques will be short lived for many brands.

[subtona]

Originally Posted by GB-man

Same in NYC. I'm predicting the shift to boutiques will be short lived for many brands.

Agree, the boutique may work for some brands.

What will the evolution be, a watch superstore?

Oh wait, it's called tourneau...last man standing when swatch and richemont come to terms with the stockholders and the changing economy?

Maybe the two super corporations (Richemont/Swatch) open competing boutique super stores?

[J!m]

Well I for one hope this depresses pricing so I can think about acquiring watches again. The prices are inflating so fast the bubble will burst.

Only ones hurt will be the speculators buying watches for short term gains (?).

Maybe there's hope I can get a 1655!

[ajas]

Originally Posted by Ruud Van Driver

A lot of the high-end boutiques here in Singapore don't seem to be empty when I pass them by.

agree. And don't willing to give any reasonable discount neither

[PatrickJ]

Originally Posted by RationalPragmatist

Yeah, not good at all and Omega is 'branching out' into sunglasses:

http://www.reuters.com/article/swatc...-idUSL8N19S39E

A pair of sunglasses with your Moonwatch sir?

Omega are doing cologne, bracelets and cuff links. Perhaps a clothes line is next.