Omega raises luxurious watch costs as different Swatch manufacturers battle
2 min read
The transfer comes as different watch manufacturers of Swatch Group battle to develop income and will weigh on gross sales volumes of prime model Omega, which is the third-biggest Swiss marque by income.
“The Omega worth enhance outcomes from weak point slightly than energy,” analysts led by Edouard Aubin wrote within the report. “With among the group’s main manufacturers (Longines, Tissot, Breguet, and so forth.) struggling, we estimate that the Swatch Group is more and more depending on Omega’s money movement.”
An Omega spokesperson didn’t instantly reply to a request for remark.
Swatch Group acquired a 3rd of its gross sales and about 60 per cent of its working revenue from Omega in 2022, in accordance with Morgan Stanley estimates. The model, which lately launched new variations of its Seamaster diving watch assortment to mark the seventy fifth anniversary of the mannequin, may see stress on gross sales development following the value hikes.
The US overtook China in 2021 as the highest export marketplace for Swiss timepieces. Latest demand is exhibiting indicators of weak point nonetheless with exports to the US declining in April for the primary time in additional than two years. They rebounded in Could.
Whereas fashions from Rolex, the most important Swiss watchmaker, are extraordinarily troublesome to purchase at retail as a result of demand outstrips provide, merchandise from Omega, whose gross sales are estimated at about 2.5 billion francs ($2.8 billion), are simpler to come back by.
The worth will increase might cut back Omega’s gross sales volumes, particularly because the model isn’t actively attempting to maintain its bestselling fashions scarce, the Morgan Stanley analysts stated.
Omega and different Swatch manufacturers together with Longines and Tissot raised costs within the UK and Europe in February.
Most Omega watches commerce under their retail worth on the secondary market whereas most Rolex fashions commerce at a premium, in accordance with information from WatchCharts.
