The haves and have clocks: Demand for Rolex and Patek Philippe watches keeps booming

[BNA/LION]

Wed, May 18, 2022
By Oscar Williams-Grut

Britain is facing the worst cost of living crisis in a generation but not all of us are feeling the squeeze equally: the super-rich still have enough cash in the bank to acquire Patek Philippe and Rolex watches, giving a boost to Watches of Switzerland.

The luxury watch dealer said today it is still seeing bumper demand for high-end timepieces despite rising interest rates and inflation, and diving stock prices.

Watches of Switzerland’s sales jumped by 40% to £1.2 billion in the 52 weeks to the start of May. Sales have remained strong this year despite the outbreak of war in Ukraine and growing fears of recession in the UK and US.

Chief executive Brian Duffy said: “We are pleased to report a strong quarter of 48% growth to finish what was an outstanding year for the group. We have delivered another record year of revenue and profitability.”

The company specialises in brands including Rolex, Tudor, advertised by David Beckham, and Cartier. These companies make watches that can run into the tens of thousands of pounds.

Watches of Switzerland, which also owns Mappin & Webb and Goldsmiths, forecast even higher sales in the 12 months ahead despite economic storm clouds on the horizon. It expects sales of £1.45 billion to £1.5 billion, though it cautioned that profits will be either flat or up only slightly.

Duffy said: “Consumer desire for ‘super high demand’ brands (Rolex, Patek Philippe and Audemars Piguet) continues to exceed supply and other luxury watch brands are enjoying exceptionally strong demand and sales. Luxury jewellery demand is also very positive.”

Analysts at Barclays said: “The outlook remains remarkably strong.”

Shares dipped 38.1p, or 3.8%, to 954.4p.

[Adam84]

It’s always the way with economic downturns. Rich get richer, poor get poorer.

An extra £100 a month on gas/electricity is devastating to some, and to others they won’t even feel it.

If you’ve got £50,000 to spend on a watch I doubt you’re too worried about what’s going on right now

[sneakertinker]

Ahh yes, good ol’ Watches of Switzerland…Where they’ll push models / brands that have been sitting in cabinets collecting dust for, well forever really, with the hope that you’ll possibly be able to get on that Rolex “waiting list”…No wonder their profit is up ��*♂️

[mountainjogger]

Interesting Larry.

But then again, as many have discussed, it is one thing to talk about secondary prices correcting. Quite another to talk about a slump in sales by AD's.

Obviously, as long as secondary prices are higher than new stock from an AD, AD's will be backlogged. And I think we are quite a ways from that.

My real question is this. If the secondary market corrected to a 10 or 20% premium on stainless models, would they be flooded with sales? I think there is a good chance they would be.