Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Wednesday, August 21, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

Watches of Switzerland shares plunge by a quarter after Rolex buys retailer Bucherer

August 25, 2023
in News
Reading Time: 3 mins read
A A
Watches of Switzerland shares plunge by a quarter after Rolex buys retailer Bucherer
0
SHARES
ShareShareShareShareShare

READ ALSO

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

Japan trade on deck, Wall Street rally pauses

A tray of Rolex watches are seen on a dealer’s stand at the London Watch Show on March 19, 2022 in London, England.

Leon Neal | Getty Images

The Watches of Switzerland Group lost a quarter of its value on Friday morning, heading for the stock’s worst day ever, after luxury watchmaker Rolex announced a deal to buy watch retailer Bucherer.

Rolex said the acquisition for an undisclosed sum followed the decision of Bucherer owner Jorg Bucherer — the 86-year-old grandson of founder Carl Bucherer — to sell the business in the absence of any direct descendants to take the reins.

“This move reflects the Geneva-based brand’s desire to perpetuate the success of Bucherer and preserve the close partnership ties that have linked both companies since 1924,” Rolex said in a statement.

“The Rolex group is convinced that this acquisition is the best solution not only for its own brands but also for all the watch and jewellery partner brands, as well as for all the employees of the Bucherer group.”

Bucherer will retain its name and brand and its management team will remain unchanged, Rolex confirmed, with its integration into the Rolex business set to complete once competition regulators approve the takeover.

In a subsequent statement on Friday, Watches of Switzerland attempted to soothe apparent market concerns that Bucherer, the world’s largest luxury watch retailer, will seize more market share through its tie-up with the iconic brand.

Watches of Switzerland insisted the acquisition was solely about succession planning for Bucherer and that Rolex — which is breaking with its modus operandi of acting solely as a manufacturer — is not making a “strategic move” into the retail market.

Watches of Switzerland shares plunge by a quarter after Rolex buys retailer Bucherer

In its statement, Watches of Switzerland noted that Jorg Bucherer “has no family succession and his wishes are to form a legacy foundation with the proceeds of this transaction.”

“This is not a strategic move into retail by Rolex. This is the best-judged reaction to the succession challenges of Bucherer SA,” Watches of Switzerland added.

“There will be no operational involvement by Rolex in the Bucherer business. Rolex will appoint non-executive Board members. There will be no change in the Rolex processes of product allocation or distribution developments as a consequence of this acquisition.”

Nevertheless, shares of the London-listed company plunged by as much as 29% in early trade, before paring losses.

Reassurance has ‘fallen on deaf ears’

Russ Mould, investment director at stockbroker AJ Bell, said investors fear that the tie-up will mean Bucherer receives “preferential treatment including better access to the watches that consumers are desperate to buy.”

“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,” Mould said in an email.

“This is what Rolex might have promised now, but that could easily change in the future.”

Mould noted that a trend had emerged among various product manufacturers, including big sportswear brands, of selling directly to consumers, in turn learning more about customer preferences and growing margins by cutting out retailers.

“Imagine that happening with Rolex. Theoretically, it could use Bucherer as its channel to sell and not have to bother with other authorised dealers such as Watches of Switzerland,” Mould said.

“It’s worth noting that Watches of Switzerland has been a favourite stock among many mid-cap fund managers. They will have to look hard at the Bucherer announcement and decide if it radically changes the investment case.”

Credit: Source link

ShareTweetSendSharePin
Previous Post

The Morning After: Trump’s first post since X reinstated him is his mug shot

Next Post

How Jasson Dominguez is barreling toward 2024 Yankees arrival

Related Posts

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
News

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

August 21, 2024
Japan trade on deck, Wall Street rally pauses
News

Japan trade on deck, Wall Street rally pauses

August 21, 2024
GMC targets electric truck leadership against Tesla, Ford, Rivian
News

GMC targets electric truck leadership against Tesla, Ford, Rivian

August 21, 2024
Brits snap up lower mortgages as BOE cut boosts market
News

Brits snap up lower mortgages as BOE cut boosts market

August 20, 2024
Eli Lilly weight loss drug cuts risk of developing diabetes in trial
News

Eli Lilly weight loss drug cuts risk of developing diabetes in trial

August 20, 2024
Who is Mike Lynch, UK tech entrepreneur missing in superyacht sinking?
News

Who is Mike Lynch, UK tech entrepreneur missing in superyacht sinking?

August 20, 2024
Next Post
How Jasson Dominguez is barreling toward 2024 Yankees arrival

How Jasson Dominguez is barreling toward 2024 Yankees arrival

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

Millennial says hiring manager asked her to change out of shorts

Millennial says hiring manager asked her to change out of shorts

August 19, 2024
How to watch, stream Simone Biles and Day Ten of the 2024 Olympics free without cable

How to watch, stream Simone Biles and Day Ten of the 2024 Olympics free without cable

August 5, 2024
Brian Cashman opens up on whether Yankees would demote Anthony Volpe

Brian Cashman opens up on whether Yankees would demote Anthony Volpe

August 20, 2024
Donald Trump vows to make U.S. a ‘Bitcoin superpower’ and create national stockpile of tokens

Donald Trump vows to make U.S. a ‘Bitcoin superpower’ and create national stockpile of tokens

July 27, 2024
Jets running back Tarik Cohen retires in stunning decision

Jets running back Tarik Cohen retires in stunning decision

August 1, 2024
David Ortiz rubs Adrian Beltre’s head at Hall of Fame induction ceremony

David Ortiz rubs Adrian Beltre’s head at Hall of Fame induction ceremony

July 22, 2024
Luxury giant LVMH’s earnings hit by budget-tight Chinese consumers

Luxury giant LVMH’s earnings hit by budget-tight Chinese consumers

July 24, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • Yankees’ DJ LeMahieu in another rut as porous season continues
  • Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
  • The EU wants no corner of the digital sphere left untouched, warning X and AI could be next
  • Kevin James recreates viral video in electric Mets moment

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In