Hermes Soars; Watches Not So Much

[77T]

See:
https://www.cnbc.com/2025/02/14/herm...rchterm=hermes

Great results but...
in the detailed report the watch division lagged and they hope to make some strategic investments.

LVMH and Swatch has them cornered methinks.


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[GB-man]

A shame as they make much better looking watches than most fashion brands.

[77T]

Yes - and last month Richemont admitted watches were a drag on growth. Slumping sales.

Much like Hermes, they had good growth over all but....

By division, jewellery — which includes Cartier and Van Cleef & Arpels — led the way, smashing expectations to reach 14 per cent growth. Sales in Richemont’s watches, featuring IWC Schaffhausen, Piaget and Jaeger-LeCoultre, were down 8 per cent.

I see some horological consolidation coming between Richmond & Hermes but I couldn't say which direction (that is, who is acquiring what).


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[brandrea]

Originally Posted by 77T

Yes - and last month Richemont admitted watches were a drag on growth. Slumping sales.

Much like Hermes, they had good growth over all but....

By division, jewellery — which includes Cartier and Van Cleef & Arpels — led the way, smashing expectations to reach 14 per cent growth. Sales in Richemont’s watches, featuring IWC Schaffhausen, Piaget and Jaeger-LeCoultre, were down 8 per cent.

I see some horological consolidation coming between Richmond & Hermes but I couldn't say which direction (that is, who is acquiring what).


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Interesting take Paul …

[Blansky]

Hermes, Chanel, even Ralph Lauren make some interesting watches BUT I don't think most collectors take them seriously, and some men would never wear a watch by Chanel or probably Hermes because of the feminine connection to the names.

Whereby a Rolex is a MANS watch.

Cartier seems to have carved out the exception to this phenomenon.

[Krash]

Hermes does make some watches I like (believe it or not). Would I buy one? Probably not.


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[Paul C]

Originally Posted by Blansky

Hermes, Chanel, even Ralph Lauren make some interesting watches BUT I don't think most collectors take them seriously, and some men would never wear a watch by Chanel or probably Hermes because of the feminine connection to the names.

Whereby a Rolex is a MANS watch.

Cartier seems to have carved out the exception to this phenomenon.

Yes correct fashionistas don't take Ferrari seriously in fashion. Same way horologists don't take Hermès etc. seriously in horology.

[Calatrava r]

It definitively appears the whole watch market, save a few hot areas like Rolex sport models and some SS models from some other prestige brands, is nursing a hangover from the crazy Covid demand of a few years back.

[enjoythemusic]

Compared to 2000 and 2010, bet 2020 was eye-popping. Imho we're at a 'new normal' that is higher than when... 2000. i could be wrong, but sure feels like A LOT of mechanical timepieces are being sold even at 2025 qty.

[Chiboy]

They do make awesome ties!

[77T]

It was interesting on the earnings call to hear them say that their ties and scarves are for the aspirational buyer.

In other words, those who can't afford the couture line.


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[Cru Jones]

Hermes: some great watches.

To say otherwise means one doesn’t really follow watches (nothing wrong with that).

[enjoythemusic]

Originally Posted by Chiboy

They do make awesome ties!

+1.

My wife's fave on me is their classic orange tie.

[Jay (Eire)]

Originally Posted by 77T

It was interesting on the earnings call to hear them say that their ties and scarves are for the aspirational buyer.

In other words, those who can't afford the couture line.


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Yes, this is how all these brands work. Scarfs, ties, key chains and small accessories drive a lot of revenue from “brand tourists”. Even up to the small leather goods that may be several hundreds of dollars.

I have seen some really fantastic Hermes watches, but even then I’m one of those collectors that can’t see beyond the fact that horology is not the core of the brand. Never say never though.

As it relates to their core competency, then they are hard to match. If one is looking for leather goods among the sea of what is now “masstige”, better to pony up (pun intended) and buy Hermes. Far far superior product.

[HL65]

Originally Posted by enjoythemusic

+1.

My wife's fave on me is their classic orange tie.

Ties & belts for me!

Scarves for my wife.

[BraveBold]

Originally Posted by Jay (Eire)

Yes, this is how all these brands work. Scarfs, ties, key chains and small accessories drive a lot of revenue from “brand tourists”. Even up to the small leather goods that may be several hundreds of dollars.

I have seen some really fantastic Hermes watches, but even then I’m one of those collectors that can’t see beyond the fact that horology is not the core of the brand. Never say never though.

As it relates to their core competency, then they are hard to match. If one is looking for leather goods among the sea of what is now “masstige”, better to pony up (pun intended) and buy Hermes. Far far superior product.

Agreed. I am far happier adding Hermes bags for my wife vs modern iterations of others that have clearly moved the needle further to brand vs build. It is also why I love Rolex - the quality end of the bargain is fully adhered to, even if the premium is steep. Hermes leather bags are in that same category.