WOS annoyed at Rolex buying Bucherer

[m j b]

The original story is here, copied below.

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Watches of Switzerland loses a quarter of its value after Rolex deal
Published: Aug. 25, 2023 at 5:13 a.m. ET
By Steve Goldstein

Watches of Switzerland Group lost a quarter of its market value on Friday after Rolex agreed to buy a leading Swiss watch retailer.

Watches of Switzerland shares WOSG, -20.04% slumped 27%, after Rolex on Thursday said it’s buying Bucherer, which has 100 outlets worldwide, not just in Switzerland but in the U.S., the U.K., Germany, France, Denmark and Austria.

Watches of Switzerland has 202 showrooms in the U.K., the U.S. and Europe. In a statement, Watches of Switzerland said the move is not a strategic move into retail by Rolex but a move reflecting Bucherer’s succession challenges, as 86-year-old Jorg Bucherer, the grandson of the founder, does not have heirs.

Watches of Switzerland said its statement was reviewed and confirmed “by the highest level of Rolex management” at both Geneva headquarters and in the U.K. and the U.S.

Analysts weren’t so sure. “The acquisition paves the way for Rolex to expand its direct-to-consumer sales efforts,” said Eleonora Dani, an analyst at Shore Capital. Rolex presently just has a single owed store, in Geneva.

In its statement, Rolex said the Bucherer deal is the best solution not only for its own brands but for the broader industry. It said Bucherer will continue to be independently run.

[TheDogHouse]

Sounds like a good time to buy their stock.

[MonsterSS]

very interesting...

[enjoythemusic]

Originally Posted by TheDogHouse

Sounds like a good time to buy their stock.

My thoughts exactly, typical stonk trader overshoot

$9.04 USD right now.

[Rrpdc]

Not impressed with wos anyway. Been to various nyc locations and even Plano Texas location. Treated the same with nothing to sell and even on non Rolex, no discount for omega , zenith, jlc etc. total joke.

[RollingInTheDeep]

Ha - I spoke to the "historical" component in another post. I do believe there is a historical component - however - there is no coincidence in my opinion that they also happen to be the primary pre-owned AD.

I don't know which came first, the decision to buy the company or the pre-owned strategy, but convinced they are connected with Rolex anchoring on "succession challenges" as a convenient way to avoid admitting they are sinking their their teeth into retail revenues.

[77T]

The impact is unknown until Rolex decides it’s own strategic direction with Bucherer in the Group.

This is a backstop move IMHO. It kept Swatch, Richemont, Patek and others at bay.

WOS is so far back in the rearview mirror at Rolex that WOS is a speck.


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[enjoythemusic]

Great points Paul, and I personally trust Rolex in balanced operation to benefit all.

[miamiclay]

Originally Posted by 77T

The impact is unknown until Rolex decides it’s own strategic direction with Bucherer in the Group.

This is a backstop move IMHO. It kept Swatch, Richemont, Patek and others at bay.

WOS is so far back in the rearview mirror at Rolex that WOS is a speck.

Interesting thought!
Do you think this acquisition was known and planned as a part of or complement to the CPO program, before CPO was announced?
.

[77T]

That’s hard to say - we don’t know how long the conversation has been going.

If I recall correctly Bucherer was a lead-out partner in CPO.

So in the final analysis, it was good that some synergy existed in that aspect.

I believe it was 90+ years (actually 99 yrs.) of long-term partner equity plus good mesh with strategy as the driving forces.


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[Watchsprings]

Interesting, I cannot feel bad for WOS as there have been various stories of disappointing experiences with WOS on this forum.

[enjoythemusic]

Correction, my error: OTCMKTS: WOSGF $7.08

[Dos Gris]

Like they say in Poland---Toughsky Shitsky