We’ve been watching how the sales of timepieces have been travelling and finally we have promising news. Swiss watchmaker IWC, part of Swiss luxury goods group Richemont*, is now performing "astonishingly well" in the U.K. And it is also performing very strongly in China and some of the key Asian regions.
IWC Chief Executive Georges Kern said in a Reuters article, "China and the most important markets Hong Kong and Macau are proving to be robust for us and are developing better than we had feared a few months ago."
Kern also stated, “We remain cautious and don't see any reason for euphoria. But the first signs of at least a stabilisation are there.”
This development is a nice contrast to recent reports that timepieces have been the fly in the ointment for luxury goods conglomerates, dragging down their overall profits due to inventories... We’ve red flagged this issue on the MO Down several times, including on March 11 when we reported: ‘Bulgari Profits Slump As Customers Watch Their Spending’. Click here to read the full report.
*Richemont is controlled by South Africa's Rupert family, and is the world's third-largest luxury goods group behind LVMH and Hermes.
Article by: Melinda O'Rourke