As stocks surged to all-time highs, demand in the luxury watch market continued to stabilize after experiencing a boom and bust in 2021-22. Especially in the United States.
Watches of Switzerland, a U.K.-based jewelry retailer with a growing retail presence in the U.S., last week said its U.S. sales jumped 14 percent in the fiscal fourth quarter, prompting the retailer to achieve better-than-expected results.
The company’s shares rose 10% following this news.
What is old becomes new again. Used watches are now the second largest category of watches in Switzerland.
CPO sales also help retailers overcome a persistent problem when it comes to Rolex sales in particular: supply.
Hurley said Rolex CPO’s business had been” very successful “and said the company’s entry into the U.S. market last year” 100% ” helped improve results across the industry.
“It just gives people extra confidence and without a doubt will help grow the secondary market as a whole,” Hurley said.
The company told analysts last week that growth in the category had been “exponential” and said by the end of next year Rolex CPO sales could approach 20% of the company’s revenue.
Its CEO Duffy told analysts that the company remains ” pleased with the support we’re getting for the projects we’re doing and what’s happening in the market as a whole.”
Projects that, in particular, involve continued growth in the US market.
“When you look at the broader watch market, the U.S. is probably the most stable market out there,” Hurley said.
“I think all brands over the last five or six years have realized the capacity and ability of the US market to grow, and therefore, retailers are investing, and all brands are also investing behind that.”
Hurley also noted that retailers like Watches of Switzerland that spend a lot of money on ” monoblock “stores — – for example, its new standalone Rolex store in Atlanta-don’t make these investments without feeling” the support we’ll get. get it from our top Watch partners.”
Suggesting a Swiss Watch does have some indication of how many units it will receive for sale. The number that the company will keep near the vest.
And as Duffy told analysts, the company’s establishment was “never happy with the allocation” it got from Rolex, adding: “demand continues to significantly exceed supply.”