Prices are up but watch lovers are still buying Rolex and Omega – demand for timepieces is booming, says Omega-owner Swatch Group and Watches of Switzerland, the UK’s biggest retailer
- Wait-lists are increasing as are average selling prices, said Watches of Switzerland CEO Brian Duffy – Rolex raised its UK prices by an average of 2.5 per cent across its range this year
- Swatch Group includes brands like Longines, Blancpain and Tissot, and its CEO Nick Hayek highlights demand for lower-priced models like the Omega MoonSwatch in the US and across Asia
Swatch shares rose as much as 7 per cent as CEO Nick Hayek said revenue may reach a record this year helped by demand in China and the US. Separately, Watches of Switzerland surged as much as 18 per cent after the UK retailer said demand for luxury timepieces is still solid despite price increases by some of the biggest brands.
As first-half earnings exceeded pre-pandemic levels for the first time, Hayek said in an interview that demand for lower-priced watches in Asia and the US remains strong. He also pointed out that China has still not made a full recovery.
Swiss watch exports have continued to increase in 2023 after reaching a record of more than 24 billion francs (around US$28 billion) last year. The reports assuaged concerns that the demand for luxury goods in the US might be waning. Watch exports to that market dipped in April.
“What is really impressive is the [strength of the] US as well as Europe across all price segments,” Hayek said.
Average sales per Swatch store rose 30 per cent worldwide, boosting the revenue that the group gets from its retail network to 40 per cent of its total.