Top Watch Retailer Shares Crash As Rolex Bubble Deflates
Another ominous sign the Rolex bubble deflates is a disappointing earnings report from Watches of Switzerland Group Plc, a top watch seller in the UK.
Analysts were caught off guard when Watches of Switzerland Group reported weaker-than-expected sales for the third quarter and lagging US demand, according to Bloomberg. Shares in London plunged as much as 16%, the most in two years.
For the quarter, Watches of Switzerland reported a 17% rise in sales to £407 million, missing the average Wall Street analyst consensus estimates of £425 million. US sales also missed estimates, coming in at around £169 million. Analysts were expecting £180.
Here’s what analysts had to say (list coursey of Bloomberg):
Jefferies (buy) says the fiscal 3Q results were modestly below expectations, driven by performance in the US falling short
Luxury watches continue to show a strong performance, with weakness being seen in jewelry, analyst Flavio Cereda says
Barclays (overweight) says investors have got used to Watches of Switzerland beating expectations and raising guidance, but this didn’t happen this time out
Meeting expectations now the priority given the more challenging macro environment for 2023, analyst Richard Taylor says
Waning US demand builds on the bust cycle we’ve laid out to readers for the past year.
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Watches of Switzerland CEO said signs of a slowdown have emerged. He said some customers waiting on lists for Rolex and other top brands had recently deferred purchases when they received the call that it was available.
Watches of Switzerland is the top retailer of Rolex watches in the UK and one of the largest in the US.
Last week, the world’s largest used watch marketplace, Chrono24 GmbH, slashed its workforce by 13% amid a market slowdown.
The good news is everyone who didn’t panic buy a Rolex during Covid might want to start shopping around as prices have steadily dropped over the last two quarters.
Tyler Durden
Thu, 02/09/2023 – 13:15
Top Watch Retailer Shares Crash As Rolex Bubble Deflates
Another ominous sign the Rolex bubble deflates is a disappointing earnings report from Watches of Switzerland Group Plc, a top watch seller in the UK.
Analysts were caught off guard when Watches of Switzerland Group reported weaker-than-expected sales for the third quarter and lagging US demand, according to Bloomberg. Shares in London plunged as much as 16%, the most in two years.
For the quarter, Watches of Switzerland reported a 17% rise in sales to £407 million, missing the average Wall Street analyst consensus estimates of £425 million. US sales also missed estimates, coming in at around £169 million. Analysts were expecting £180.
Here’s what analysts had to say (list coursey of Bloomberg):
Jefferies (buy) says the fiscal 3Q results were modestly below expectations, driven by performance in the US falling short
Luxury watches continue to show a strong performance, with weakness being seen in jewelry, analyst Flavio Cereda says
Barclays (overweight) says investors have got used to Watches of Switzerland beating expectations and raising guidance, but this didn’t happen this time out
Meeting expectations now the priority given the more challenging macro environment for 2023, analyst Richard Taylor says
Waning US demand builds on the bust cycle we’ve laid out to readers for the past year.
Investors’ Clock Out’ Of Rolex Bull Market As Demand Cools
“Boom Time Over”: Rolex Prices Crash In China
Rolex, Patek, And Audemars Piguet Watch Prices Continue Drop As Crypto Winter Worsens
Watches of Switzerland CEO said signs of a slowdown have emerged. He said some customers waiting on lists for Rolex and other top brands had recently deferred purchases when they received the call that it was available.
Watches of Switzerland is the top retailer of Rolex watches in the UK and one of the largest in the US.
Last week, the world’s largest used watch marketplace, Chrono24 GmbH, slashed its workforce by 13% amid a market slowdown.
The good news is everyone who didn’t panic buy a Rolex during Covid might want to start shopping around as prices have steadily dropped over the last two quarters.
Tyler Durden
Thu, 02/09/2023 – 13:15
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