Swiss Watch Exports Plunge Amid Halt in Asia Demand

Swiss watch exports recorded a steep decline in March as demand in China and Hong Kong dipped below that of four years ago, during the height of the pandemic.

Shipments of timepieces slid 16% to CHF 2 billion ($2.2 billion) for the month, the Federation of the Swiss Watch Industry reported Thursday. The downturn followed a 3.8% fall in February, the first drop in more than two years, as appetite began to falter in Asia.

“Swiss watch exports recorded a sharp decline in March,” the federation noted. “China and Hong Kong accounted for a particularly high proportion of the trend. China suffered a decline…dropping to a level below that of March 2020, when the sector practically came to a halt in the middle of the month because of the Covid-19 pandemic. Hong Kong…saw a similar change.”

Supply to the US fell 7% to CHF 340.5 million ($374.5 million). In China, the federation’s second-largest market, shipments plunged 42% to CHF 150.2 million ($165.2 million), and in Hong Kong they plummeted 44% to CHF 148.1 million ($162.9 million). In Japan exports saw a 3.5% drop, while they slipped 3.6% in the United Arab Emirates (UAE). Decreases of 15% in Singapore, 13% in the UK and Germany, and 12% in France were closer to the global average, the federation explained.

Timepieces at each price point noted decreases. Watches that cost less than CHF 200 ($220) fell 19%, as did those priced between CHF 200 and CHF 500 ($550). Watches valued at CHF 500 to CHF 3,000 ($3,300) slid 38%, while those worth over CHF 3,000 decreased 10%.

For the first quarter of the year, exports went down 6% to CHF 6.08 billion ($6.69 billion).

Source: DCLA

Sotheby’s Hong Kong Watch Sale Sees Two World Records

Two timepieces set new auction records at the most recent Sotheby’s watch sale in Hong Kong, while nearly half of the lots sold above their high estimates.

A Patek Philippe Ref. 2526, the first self-winding wristwatch from collector J.B. Champion, brought in HKD 5.7 million ($729,977), within its estimated range, Sotheby’s said Monday. Meanwhile Cartier’s Paris Cloche, No. 1/1, fetched HKD 1.7 million ($210,882), more than four times its high estimate. Both set a record for the highest auction amount for the specific model, Sotheby’s noted.

In total, the April 7 Hong Kong Important Watches auction garnered HKD 126.3 million ($16.1 million). Over two-thirds of buyers were from China and the US, the auction house noted.

Meanwhile, the top lot of the auction, a Patek Philippe Ref. 2499 made in 1960, saw fierce bidding between participants in the room and on the phone. That piece, which sold within its estimated range, went for HKD 8 million ($1 million) after nearly 20 bids.

Source: DCLA

 Watches of Switzerland Annual Revenue Hits Record

Watches of Switzerland’s group revenue soared 25% for the full fiscal year as it expanded its store network and demand for luxury timepieces rose.

The UK-based retailer achieved sales of GBP 1.54 billion ($2.02 billion) for the 52 weeks that ended April 30, the company said last week. That amount is a record for the firm and has placed it “significantly ahead” of where it expected to be when it released a long-term strategic plan in 2021, it explained.

Sales grew 10% in the UK and Europe to GBP 890 million ($1.17 billion), driven by the opening of 15 new UK showrooms, as well as its first in Germany. In the US, revenue jumped 52% to GBP 653 million ($855 million), with the company opening six mono-brand shops and a Rolex store. The US now represents 42% of total group revenue, the company noted. The rise was also the result of increased appetite for luxury watches, which continues to outpace supply. Watches of Switzerland’s client registration for timepieces is growing, as is the average selling price per piece, it said.

Profit for the period advanced 21% year on year to GBP 121.8 million ($159.5 million).

“Luxury watch sales grew 28% year on year, representing 87% of group revenue,” said Watches of Switzerland CEO Brian Duffy. “Luxury jewelry sales increased at a more modest 10% in the year, reflecting a tougher macroeconomic backdrop and focus on full-price sales. Following two years of exceptional performance, sales are significantly ahead of plan, by over GBP 200 million [$261.9 million].”

During the year, Watches of Switzerland also opened five shops in Sweden and Denmark, and a boutique in Ireland. In fiscal 2024, it will debut a flagship Rolex store on London’s Old Bond Street and a shop in Manchester, UK, as well as a joint venture with watch brand Audemars Piguet. The company expects revenue of between GBP 1.65 billion ($2.16 billion) and GBP 1.7 billion ($2.23 billion) for the full year.

Source: DCLA