Rolex UK Sales Actually ROSE 13% in 2020!

[vh2k]

Rolex UK sales rise 13% in 2020

We do not get many opportunities to look behind the curtain of Rolex, but reporting rules in the United Kingdom demand that businesses publish their accounts every year, so we can at least see how the company is performing across the pond.

The results are remarkable.

Rolex Watch Company UK sales rose by 13% in the pandemic ravaged financial year of 2020.

In accounts published this morning, the full service UK distributor for Rolex and Tudor in the UK and Ireland, generated sales of £468 million, up from £415 million in 2019.

That implies retail sales of around £800 million.

Remarkably, Rolex Watch Company UK sales have quadrupled in just 10 years and more than doubled since 2016.

This in a year when all of its authorized dealers’ stores were closed for at least three months, depending on where they are in the country, and for a business — in the case of Rolex, but not Tudor — that does not allow its watches to be sold online.

In a strategic report accompanying the accounts, Rolex states that: “The growth in 2020 was due to a combination of factors including improvements in mix, price, volume and a control on the growth of operating costs”.

Operating profit increased by 19% from 70.2 million to £83.2 million.

Impact of covid

The report asserts that “covid-19 has not had a significant impact on the company’s operating activities apart from the ability to sponsor certain sporting events”.

It makes no mention of Rolex receiving any government assistance through the furlough scheme or other measures.

Rolex UK made a one-off donation of £1.7 million to the British Red Cross in 2020 to support their aid campaign during the pandemic, the company reveals.

Covid may not have negatively affected the operations of Rolex Watch Company UK, but it most certainly affected Rolex’s production in Switzerland, where it had to close its manufacturing facilities for three months and is thought to have lost at least a quarter of its annual production.

The pandemic also had a profound affect on Rolex authorized dealers, which managed to sell watches with a higher total value (not necessarily more units) than in the previous year despite being unable to welcome customers to their stores for at least three months of the year and prevented from selling Rolex watches online.

Instead they switched to clienteling through the lock downs, with loyal customers and people on waiting lists contacted to see whether they were in a position to buy.

Many of these sales were for more than just the pieces for which they were on waiting lists.

Customers have been prepared to buy more expensive models in deals to improve their chances of securing the more scarce pieces, which is possibly part of what Rolex describes as “improvements in mix, price and volume”.

If the volume of watches sold increased, it must mean the UK was allocated a higher percentage of global supply than other territories; Hong Kong being the obvious example of a location that imported fewer watches last year.

For the Swiss watch industry as a whole, the value of exports to Hong Kong dropped by CHF 1 billion while the UK was lower by CHF 300,000.

Rolex and Tudor have gained market share in the UK. Not only has the UK operation seen sales rise by 13% in a year when total Swiss watch imports were down by 25%, the business has also outperformed LVMH Watch & Jewellery, which reported UK sales down by 9% in 2020.

https://usa.watchpro.com/rolex-uk-sa...se-13-in-2020/

[padi56]

Originally Posted by vh2k

Rolex UK sales rise 13% in 2020

We do not get many opportunities to look behind the curtain of Rolex, but reporting rules in the United Kingdom demand that businesses publish their accounts every year, so we can at least see how the company is performing across the pond.

The results are remarkable.

Rolex Watch Company UK sales rose by 13% in the pandemic ravaged financial year of 2020.

In accounts published this morning, the full service UK distributor for Rolex and Tudor in the UK and Ireland, generated sales of £468 million, up from £415 million in 2019.

That implies retail sales of around £800 million.

Remarkably, Rolex Watch Company UK sales have quadrupled in just 10 years and more than doubled since 2016.

This in a year when all of its authorized dealers’ stores were closed for at least three months, depending on where they are in the country, and for a business — in the case of Rolex, but not Tudor — that does not allow its watches to be sold online.

In a strategic report accompanying the accounts, Rolex states that: “The growth in 2020 was due to a combination of factors including improvements in mix, price, volume and a control on the growth of operating costs”.

Operating profit increased by 19% from 70.2 million to £83.2 million.

Impact of covid

The report asserts that “covid-19 has not had a significant impact on the company’s operating activities apart from the ability to sponsor certain sporting events”.

It makes no mention of Rolex receiving any government assistance through the furlough scheme or other measures.

Rolex UK made a one-off donation of £1.7 million to the British Red Cross in 2020 to support their aid campaign during the pandemic, the company reveals.

Covid may not have negatively affected the operations of Rolex Watch Company UK, but it most certainly affected Rolex’s production in Switzerland, where it had to close its manufacturing facilities for three months and is thought to have lost at least a quarter of its annual production.

The pandemic also had a profound affect on Rolex authorized dealers, which managed to sell watches with a higher total value (not necessarily more units) than in the previous year despite being unable to welcome customers to their stores for at least three months of the year and prevented from selling Rolex watches online.

Instead they switched to clienteling through the lock downs, with loyal customers and people on waiting lists contacted to see whether they were in a position to buy.

Many of these sales were for more than just the pieces for which they were on waiting lists.

Customers have been prepared to buy more expensive models in deals to improve their chances of securing the more scarce pieces, which is possibly part of what Rolex describes as “improvements in mix, price and volume”.

If the volume of watches sold increased, it must mean the UK was allocated a higher percentage of global supply than other territories; Hong Kong being the obvious example of a location that imported fewer watches last year.

For the Swiss watch industry as a whole, the value of exports to Hong Kong dropped by CHF 1 billion while the UK was lower by CHF 300,000.

Rolex and Tudor have gained market share in the UK. Not only has the UK operation seen sales rise by 13% in a year when total Swiss watch imports were down by 25%, the business has also outperformed LVMH Watch & Jewellery, which reported UK sales down by 9% in 2020.

https://usa.watchpro.com/rolex-uk-sa...se-13-in-2020/

How can this be even possible if you believe the hundreds of posts on forum lately with no ADs world wide having watches for sale to Joe public. As today they only sell watches especially SS to so called VIP customers. So do these VIP customers then sell to the grey market as they seem to have every model at at price. Or do all ADs sell watches out of the backdoor direct to the grey market, thus putting there business and livelihood in jeopardy. Or is it because of just the normal Joe public buying watches then flipping to the grey market FOR ££$$€€ we have this increased market sales.

[RolexSimon]

Originally Posted by padi56

How can this be even possible if you believe the hundreds of posts on forum lately with no ADs world wide having watches for sale to Joe public. As today they only sell watches especially SS to so called VIP customers. So do these VIP customers then sell to the grey market as they seem to have every model at at price. Or do all ADs sell watches out of the backdoor direct to the grey market, thus putting there business and livelihood in jeopardy. Or is it because of just the normal Joe public buying watches then flipping to the grey market FOR ££$$€€ we have this increased market sales.

Maybe it's a fairly clear and honest description of what's actually happening - the small minority of the UK public able to purchase one are over the moon and just keep it and wear it? They just get the watch when their name reaches the top of the list so they never appear in cases. I know that this evidence will be a major disappointment to the conspiracy theorists on TRF but there may be little flipping (if any) at all. I'd imagine the only watches without a wait list would be DJs and they're found in windows still - albeit in lesser supply.

[enjoythemusic]

Shhh Padi, facts and math don't matter ;-)

[macrowatch]

To OP, if you read WOS earnings reports, sheds even more light.

[Harry-57]

Not surprising. Demand didn't falter during the lockdowns. There were two price hikes in the UK in 2019, the second coming at the end of the year. They sold everything they sent out and charged more money per item. Increase in sales revenue guaranteed. My AD had a record year for Rolex sales in 2020 which topped their previous record year of 2019.

[teck21]

What’s the UK financial year? To Mar 31?


Sent from my iPhone using Tapatalk

[vh2k]

Originally Posted by teck21

What’s the UK financial year? To Mar 31?

For Rolex UK, Jan-Dec.

For WOS, through May 2, 2021.

[Fleetlord]

They sold way more PM and TT than usual, so that would certainly carry the increase monetarily .

Units sold would be interesting

[askdanny]

Originally Posted by Fleetlord

They sold way more PM and TT than usual, so that would certainly carry the increase monetarily .

Units sold would be interesting

The real question is whether Rolex is producing more PM than usual -- whether they shifted production from steel to PM

[TswaneNguni]

.

[vh2k]

Originally Posted by TswaneNguni

Trust instructions does not allow. Binding rules.

Do you mind elaborating? I've heard this before.

The trust outlines requirements that a certain percentage/mix of professional, classic watches be produced?

Thanks.

[Harry-57]

Originally Posted by Fleetlord

They sold way more PM and TT than usual, so that would certainly carry the increase monetarily .

I've heard this anecdotally. It sounds logical.

[rootbeer7]

Originally Posted by Fleetlord

They sold way more PM and TT than usual, so that would certainly carry the increase monetarily .

Units sold would be interesting

Exactly this. Plus Datejusts!!

[Tricolore66]

I’d bet unit sales are actually down but larger percentage of PM pieces made up the profit increase.

[grimps]

Originally Posted by Tricolore66

I’d bet unit sales are actually down but larger percentage of PM pieces made up the profit increase.

There's a reason the cases are empty and it's because The AD's have sold everything they've been sent, they've sold them all at full retail price too where as they'd have been discounting many of the sales a few years ago.
They haven't received less stock there's just more demand now, AD's are having their best period ever despite whatever they tell you

[JSolution]

Thanks for sharing. I can’t give you any statistics but I can tell you certain it’s very very difficult to purchase a Rolex in this country. I’ve started to build a relationship with an AD very slowly over the last couple of years but I’m very impatient.

As a new customer - almost impossible they’ve heard it all before.

[strafer_kid]

Presumably this all means no changes imminent for future buyers…..

[BLNR Nairobi]

Thank you for sharing. Interesting read.

[asiparks]

Is anyone surprised sales $$ rose?

"The pandemic also had a profound affect on Rolex authorized dealers, which managed to sell watches with a higher total value (not necessarily more units) than in the previous year despite being unable to welcome customers to their stores for at least three months of the year and prevented from selling Rolex watches online."

More people buying PMs due to unavailability, to them, of steel models

"Customers have been prepared to buy more expensive models in deals to improve their chances of securing the more scarce pieces, which is possibly part of what Rolex describes as “improvements in mix, price and volume”

and people prompted into buying/bundling watches that would ordinarily remain unsold at ADs, in the hope of getting something they actually wanted.
And those unwanted purchases going off to grey dealers...

[OrangeSport]

It's actually not surprising

Lots of people benefitted financially through covid. Either by working at home and saving £100s per month in travel and eating out or from getting furlough and another job. Less was spent on leisure and holidays too.

The building trade saw quite an uplift as.people spent money on home renovations.

So, people had more to spend on luxury items and more time bored (so more likely to look for stiff to buy). Additionally, by whatever mens, greys are snapping up everything they can.

Hardly surprising it was a bumper period.