Rolex Watches and The Swatch Group (Producer of Omega Watches) claimed that the demand for Rolex And Omega Watches are steadily increasing, despite rising prices. Swatch CEO Nick Hayek is hopeful that the revenue might reach a record number with increasing demand in China and the United States. Recently, Swatch shares rose by 7%.
Apart from that, there has been an 18% surge in the Watches of Switzerland Group PLC. Furthermore, UK’s biggest watch retailer, Rolex, said that the demand for Swiss luxury timepieces is still solid, despite the fact that the prices of these big brands are increasing continuously.
However, as per the claims of Hayek, there is a demand for lower-priced watches in the US and in Asia. He also added the demand will increase even further in China. Most of the sales were in the lower-priced segments of jewelry and watches.
According to the claim by The Strait Times,
“Swiss watch exports have continued to increase in 2023 after reaching a record of more than 24 billion francs (S$37 billion) in 2022. The reports assuaged concern that demand for luxury goods in the US might be waning. Exports to that market dipped in April.”
There has been a 30% increase in average sales globally per store. This helped in boosting the revenue amount for Swatch Group, which it gets from its own retail network, which amounted to 40% of its total revenue.
As per recent data, operating profits increased by 36% to 686 million Swiss Francs in the first half of this year, as per the data of Omega and Longines, as released on Thursday. Here, the analysts expected operating profits to be 604 million francs.
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