Analysts are predicting slowing demand for luxury watches as sales for the top Rolex seller hit the lowest point in more than two years.
Key Details
- Watches of Switzerland Group Plc, the top Rolex seller in the U.K., had disappointing sales in the U.S. for the third quarter.
- Sales dropped to the lowest level in more than two years, disappointing analysts and boosting predictions that the luxury watch market is slowing down.
- The luxury watch market has risen considerably since the pandemic, but analysts think the sales drop could be an early sign that the boom is about to stop.
Why it’s news
The luxury watch market has had a good couple of years as more people started buying luxury watches during and after the pandemic, but sales in the third quarter dropped considerably, making analysts predict an oncoming downward trend.
The low spending in the watch market has been linked to U.S. consumers cutting back on spending due to high inflation and slowing economic growth.
Watches of Switzerland Group has a long waitlist for its luxury watches, but CEO Brian Duffy says many customers on the lists for multiple watches have been declining the purchase when the watches become available.
He also says that many of the top brands have raised prices this year by an average of 4%, including Rolex, Omega, Patek Philippe, and Zenith, which could lead to the purchasing slowdown.
ANalyts are continuing to watch the market and see if any weaknesses could further contribute to the slowing demand.
