Rolex UK sales & profit y/e 31/12/18

[ancientmariner]

Figures for y/e 31/12/18 as follows:

Turnover £366,975,000 (up 12%)
Operating Profit £55,478,000 (up 33%)

Turnover is sales from Rolex to the ADs.
Operating profit increased due to "improvements in mix, price, volume and control of operating costs".

Guess this is what we expected?

[~dadam02~]

And profits at Greys up 300%?

[Oxfordian]

Originally Posted by ancientmariner

Figures for y/e 31/12/18 as follows:

Turnover £366,975,000 (up 12%)
Operating Profit £55,478,000 (up 33%)

Turnover is sales from Rolex to the ADs.
Operating profit increased due to "improvements in mix, price, volume and control of operating costs".

Guess this is what we expected?

I didn't think that Rolex quoted sales figures as they were a charity? Or have I got my wires crossed?

[strafer_kid]

Pretty impressive in any event!

[Ichiran]

Keep up the good work, Rolex UK.

[Mr. Superlative]

Originally Posted by ancientmariner

Figures for y/e 31/12/18 as follows:

Turnover £366,975,000 (up 12%)
Operating Profit £55,478,000 (up 33%)

Turnover is sales from Rolex to the ADs.
Operating profit increased due to "improvements in mix, price, volume and control of operating costs".

Guess this is what we expected?

Staggering numbers. Where did you obtain this information from, as I was under the assumption the figures were not disclosed?

[ancientmariner]

Originally Posted by Oxfordian

I didn't think that Rolex quoted sales figures as they were a charity? Or have I got my wires crossed?

Figures are from The Rolex Watch Company Ltd, a UK company.

[MSchu]

That's not 'rolex' but the retail portion of a dealer network isn't it?

[MoosicPa]

That's A lot of watches they're selling!

[Devildog]

Originally Posted by MSchu

That's not 'rolex' but the retail portion of a dealer network isn't it?

No. That’s what Rolex sell to the UK dealer network.

It confirms that Rolex are not restricting supply and that demand is up





Sent from my iPhone using Tapatalk

[Devildog]

Originally Posted by Mr. Superlative

Staggering numbers. Where did you obtain this information from, as I was under the assumption the figures were not disclosed?

Rolex UK is a Rolex SA (Geneva) subsidiary (in the same way Rolex USA is)

Ltd companies in the UK must disclose this info by law.




Sent from my iPhone using Tapatalk

[CashGap]

Originally Posted by ancientmariner

FOperating profit increased due to "improvements in mix, price, volume and control of operating costs".

Selling as many SS as in the past if not more, lots more TT and PM than ever.

[rominvicta]

So that works like a wholesaler, right? And that’s the operating profit? Doubt they have any outflow a part of potential investments in real estate needed, means trading subsidiary has quite a hefty profit margin. Mind you the bigger chunk of profit stays with mother company in Switzerland. Well done Rolex! And don’t listen to any advice of bringing prices up!

[Devildog]

Originally Posted by rominvicta

So that works like a wholesaler, right? And that’s the operating profit? Doubt they have any outflow a part of potential investments in real estate needed, means trading subsidiary has quite a hefty profit margin. Mind you the bigger chunk of profit stays with mother company in Switzerland. Well done Rolex! And don’t listen to any advice of bringing prices up!

The key number here isn’t profit. It’s the increase in turnover.

Given that Rolex increased its prices in Oct 18 (late in that financial year) and by only 5%, a 12% increase in turnover represents a significant sales volume increase. That increase split between watch sales and Service Centre work, however the Service Centre sales only Make up a very small percentage of the total.

Without a doubt, Rolex UK delivered more watches to its AD network in 2018 than it did in 2017. And more in 2017 than in 2016.

[rominvicta]

Originally Posted by Devildog

The key number here isn’t profit. It’s the increase in turnover.

Given that Rolex increased its prices in Oct 18 (late in that financial year) and by only 5%, a 12% increase in turnover represents a significant sales volume increase. That increase split between watch sales and Service Centre work, however the Service Centre sales only Make up a very small percentage of the total.

Without a doubt, Rolex UK delivered more watches to its AD network in 2018 than it did in 2017. And more in 2017 than in 2016.

Are you sure of what you say? I wouldn’t be surprised if surge is due to a slight increase of PM sales. Might be more watches delivered but if this increase was in PM only, number of watches delivered did not increase by much!

[Oxfordian]

Originally Posted by ancientmariner

Figures are from The Rolex Watch Company Ltd, a UK company.

Thanks for the clarification, it’s an impressive set of figures

[exador]

Originally Posted by Devildog

Without a doubt, Rolex UK delivered more watches to its AD network in 2018 than it did in 2017. And more in 2017 than in 2016.

But, but, Rolex is deliberating withholding supply in order to move the brand upmarket!

[mash_taylor]

Originally Posted by rominvicta

Are you sure of what you say? I wouldn’t be surprised if surge is due to a slight increase of PM sales. Might be more watches delivered but if this increase was in PM only, number of watches delivered did not increase by much!

I agree. They even state it’s mix. This implies nothing about SS volumes.

[dan993]

Originally Posted by rominvicta

Are you sure of what you say? I wouldn’t be surprised if surge is due to a slight increase of PM sales. Might be more watches delivered but if this increase was in PM only, number of watches delivered did not increase by much!

I agree I also believe the amount of watches delivered only increased by a relatively small amount, but the belief that Rolex is reducing supply just doesn't seem true from what I see and I'm told.

[Devildog]

Originally Posted by rominvicta

Are you sure of what you say? I wouldn’t be surprised if surge is due to a slight increase of PM sales. Might be more watches delivered but if this increase was in PM only, number of watches delivered did not increase by much!

I don’t doubt for a minute that there are more PM sales. The question is how much more.

I worked all the numbers from the published accounts for the year to December 2017 were published which suggested not a huge change in the metal types.

I’ll do the same for 2018 when I get the chance

No matter what the split is, however, all the conspiracy theories about Rolex withholding supply to drive up brand desirability just doesn’t make sense in the light of increased sales.






Sent from my iPhone using Tapatalk