The Rolex Forums   The Rolex Watch

ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX


Go Back   Rolex Forums - Rolex Forum > Rolex & Tudor Watch Topics > Rolex General Discussion

Reply
 
Thread Tools Display Modes
Old 6 October 2021, 11:04 PM   #1
vh2k
"TRF" Member
 
Join Date: Jun 2020
Location: USA
Posts: 3,018
Rolex UK Sales Actually ROSE 13% in 2020!

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/
vh2k is offline   Reply With Quote
Old 6 October 2021, 11:41 PM   #2
padi56
"TRF" Life Patron
 
padi56's Avatar
 
Join Date: Jun 2005
Real Name: Peter
Location: Llanfairpwllgwyng
Watch: ing you.
Posts: 53,063
Quote:
Originally Posted by vh2k View Post
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.
__________________

ICom Pro3

All posts are my own opinion and my opinion only.

"The clock of life is wound but once, and no man has the power to tell just when the hands will stop. Now is the only time you actually own the time, Place no faith in time, for the clock may soon be still for ever."
Good Judgement comes from experience,experience comes from Bad Judgement,.Buy quality, cry once; buy cheap, cry again and again.

www.mc0yad.club

Second in command CEO and left handed watch winder
padi56 is offline   Reply With Quote
Old 7 October 2021, 12:11 AM   #3
enjoythemusic
2024 Pledge Member
 
enjoythemusic's Avatar
 
Join Date: Nov 2012
Real Name: Steven
Location: Glocal
Posts: 21,190
Shhh Padi, facts and math don't matter ;-)
__________________
__________________

----> Was Great Seeing Everyone At The TRF December 9 Tampa Meetup <----
https://www.rolexforums.com/showthread.php?t=968133

Love timepieces and want to become a Watchmaker? Rolex has a sensational school.
www.RolexWatchmakingTrainingCenter.com/

Sent from my Etch A Sketch using String Theory.
enjoythemusic is offline   Reply With Quote
Old 7 October 2021, 12:30 AM   #4
macrowatch
"TRF" Member
 
Join Date: Aug 2018
Location: HK
Posts: 4,366
To OP, if you read WOS earnings reports, sheds even more light.
macrowatch is offline   Reply With Quote
Old 7 October 2021, 12:41 AM   #5
Harry-57
2024 Pledge Member
 
Harry-57's Avatar
 
Join Date: Apr 2018
Real Name: Harry
Location: England
Posts: 10,681
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.
Harry-57 is offline   Reply With Quote
Old 7 October 2021, 12:47 AM   #6
teck21
"TRF" Member
 
teck21's Avatar
 
Join Date: Nov 2018
Real Name: Teck
Location: South East Asia
Watch: Tudor Black Bay 58
Posts: 1,846
What’s the UK financial year? To Mar 31?


Sent from my iPhone using Tapatalk
teck21 is offline   Reply With Quote
Old 7 October 2021, 12:53 AM   #7
vh2k
"TRF" Member
 
Join Date: Jun 2020
Location: USA
Posts: 3,018
Quote:
Originally Posted by teck21 View Post
What’s the UK financial year? To Mar 31?
For Rolex UK, Jan-Dec.

For WOS, through May 2, 2021.
vh2k is offline   Reply With Quote
Old 7 October 2021, 01:38 AM   #8
Fleetlord
2024 Pledge Member
 
Fleetlord's Avatar
 
Join Date: May 2013
Location: Vain
Posts: 6,023
They sold way more PM and TT than usual, so that would certainly carry the increase monetarily .

Units sold would be interesting
Fleetlord is offline   Reply With Quote
Old 7 October 2021, 03:21 AM   #9
askdanny
"TRF" Member
 
askdanny's Avatar
 
Join Date: Jan 2016
Location: HND/SEA/CDG/AMS
Watch: Clock on my A330
Posts: 779
Quote:
Originally Posted by Fleetlord View Post
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
__________________
Rolex stories you won't find anywhere else: https://coron.et
askdanny is offline   Reply With Quote
Old 7 October 2021, 03:21 AM   #10
TswaneNguni
"TRF" Member
 
TswaneNguni's Avatar
 
Join Date: Feb 2008
Real Name: Chris
Location: .
Watch: Daytonas/Subs/GMTs
Posts: 12,609
.
TswaneNguni is offline   Reply With Quote
Old 7 October 2021, 03:31 AM   #11
vh2k
"TRF" Member
 
Join Date: Jun 2020
Location: USA
Posts: 3,018
Quote:
Originally Posted by TswaneNguni View Post
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.
vh2k is offline   Reply With Quote
Old 7 October 2021, 05:42 AM   #12
Harry-57
2024 Pledge Member
 
Harry-57's Avatar
 
Join Date: Apr 2018
Real Name: Harry
Location: England
Posts: 10,681
Quote:
Originally Posted by Fleetlord View Post
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.
Harry-57 is offline   Reply With Quote
Old 7 October 2021, 06:17 AM   #13
Tricolore66
2024 Pledge Member
 
Join Date: Sep 2019
Location: USA
Posts: 1,139
I’d bet unit sales are actually down but larger percentage of PM pieces made up the profit increase.
Tricolore66 is offline   Reply With Quote
Old 7 October 2021, 06:46 AM   #14
JSolution
"TRF" Member
 
JSolution's Avatar
 
Join Date: Aug 2019
Real Name: Jay
Location: England
Watch: SkyD
Posts: 6,398
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.
JSolution is offline   Reply With Quote
Old 7 October 2021, 06:51 AM   #15
strafer_kid
"TRF" Member
 
strafer_kid's Avatar
 
Join Date: Oct 2009
Real Name: Kenny
Location: northern ireland
Watch: SDs, Subs & GMTs
Posts: 5,136
Presumably this all means no changes imminent for future buyers…..
strafer_kid is offline   Reply With Quote
Old 7 October 2021, 08:51 AM   #16
BLNR Nairobi
"TRF" Member
 
BLNR Nairobi's Avatar
 
Join Date: Jun 2017
Real Name: Tony
Location: Global
Watch: All of them.
Posts: 1,141
Thank you for sharing. Interesting read.
BLNR Nairobi is offline   Reply With Quote
Old 7 October 2021, 02:05 PM   #17
RolexSimon
"TRF" Member
 
RolexSimon's Avatar
 
Join Date: Aug 2020
Location: Australia
Posts: 1,377
Quote:
Originally Posted by padi56 View Post
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.
RolexSimon is offline   Reply With Quote
Old 7 October 2021, 02:16 PM   #18
grimps
"TRF" Member
 
Join Date: Aug 2015
Location: England
Posts: 1,420
Quote:
Originally Posted by Tricolore66 View Post
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
grimps is offline   Reply With Quote
Old 7 October 2021, 02:24 PM   #19
asiparks
"TRF" Member
 
asiparks's Avatar
 
Join Date: Aug 2009
Location: Portland, OR
Watch: ing the Detectives
Posts: 1,888
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...
__________________
Eagels may soar, but weasels are seldom sucked into jet engines...
asiparks is offline   Reply With Quote
Old 7 October 2021, 04:11 PM   #20
rootbeer7
2024 Pledge Member
 
rootbeer7's Avatar
 
Join Date: Jan 2014
Location: london
Posts: 6,157
Quote:
Originally Posted by Fleetlord View Post
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!!
__________________
@imrootbeer7
rootbeer7 is offline   Reply With Quote
Old 7 October 2021, 04:34 PM   #21
OrangeSport
"TRF" Member
 
OrangeSport's Avatar
 
Join Date: Oct 2011
Real Name: Jason
Location: Essex, UK
Watch: 14060M
Posts: 2,943
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.
__________________
OrangeSport is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Wrist Aficionado

My Watch LLC

WatchesOff5th

DavidSW Watches

Takuya Watches

OCWatches


*Banners Of The Month*
This space is provided to horological resources.





Copyright ©2004-2024, The Rolex Forums. All Rights Reserved.

ROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEXROLEX

Rolex is a registered trademark of ROLEX USA. The Rolex Forums is not affiliated with ROLEX USA in any way.