Watches of Switzerland Says Rolex Isn’t Moving Into Retail

[PinkDiamond]

I posted an article on Rolex acquiring Bucherer a few days ago, and they stated they're not getting into retail, but apparently Watches of Switzerland's investors got spooked by it causing their stock to take a 30% dive. It appears they don't believe them, and of course the future is unwritten, and the direction all companies go in will depend on the conditions that exist at the time, but it's too bad they jumped the gun and didn't wait to see what Rolex was going to do.

Watches of Switzerland Says Rolex Isn’t Moving Into Retail
By Rob Bates | August 25, 2023



"After its shares plunged following the news that Rolex was purchasing manufacturer and retailer Bucherer, Watches of Switzerland issued a statement that said it doesn’t anticipate Rolex becoming a rival retailer.

After speaking to Rolex management, Watches of Switzerland execs were convinced “this is not a strategic move into retail by Rolex,” the statement said.

“There will be no operational involvement by Rolex in the Bucherer business,” the statement added. “Rolex will appoint nonexecutive board members.… There will be no change in the Rolex processes of product allocation or distribution developments as a consequence of this acquisition.”

Rolex made similar comments when it announced it was buying Bucherer, saying its relationship with other multi-brand retailers will “remain unchanged.”

Bucherer purchased the Tourneau watch company in 2018. It owns 100 retail outlets in the United States, Switzerland, England, Germany, France, Denmark, and Austria.

Watches of Switzerland said the sale to Rolex was made because Bucherer chairman and owner Jörg Bucherer “is 86 years old and…has no family succession, and his wishes are to form a legacy foundation with the proceeds of this transaction.”

It noted that Bucherer was one of Rolex’s largest global partners, as is Watches of Switzerland. Rolex accounts for about half of Watches of Switzerland’s sales.

Despite this, Bloomberg estimated that Watches of Switzerland lost $500 million in market capitalization following the Rolex/Bucherer announcement, with its stock falling as much as 30%.

Russ Mould, investment director at online broker AJ Bell, told CNBC, “Watches of Switzerland’s efforts to reassure the market that there will be no change in how Rolex allocates stock have fallen on deaf ears.

“This is what Rolex might have promised now, but that could easily change in the future.…Theoretically {Rolex] could use Bucherer as its ... "
https://www.jckonline.com/editorial-art ... and-rolex/