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- Swiss Watches said the deal will be financed through existing financing facilities.
Shares in Watches of Switzerland rose on Friday after the group revealed it will acquire Hodinkee, a New York-based platform popular with watch enthusiasts.
In a bid to strengthen its online presence, Watches of Switzerland plans to integrate Hondinkee’s digital content and e-commerce activities, which attract around 22 million unique visitors annually and attract approximately one million followers on social media.
Watches of Switzerland said the acquisition will be financed through existing financial facilities.
Responsible: Brian Duffy is the CEO of Swiss Watches
Hodinkee’s business activities, including its limited edition collaborations, will be integrated with Watches of Switzerland’s US e-commerce site as part of the deal.
Watches of Switzerland said the acquisition will be financed through existing financial facilities.
He said in a stock market statement: “One of the stated objectives of the Group’s Long Term Plan is to take advantage of existing growth opportunities by increasing the leadership of the online sector, and this acquisition will further enhance the Group’s ability to capture market share, particularly in the fast-growing US.” market.’
Brian Duffy, CEO of Watches of Switzerland, said: “We have been avid fans of Hodinkee for many years and have long respected the success of Ben and his team in creating the undisputed destination for luxury watch enthusiasts.” .
On track: Last month, Swiss Watches said it was “on track” to meet fiscal 2025 guidance.
Hodinkee founder Ben Clymer said: ‘The Watches of Switzerland Group revolutionized the watch retail world in the same way that Hodinkee worked to create a new category for watch editorial coverage.
“I am honored to align Hodinkee with Watches of Switzerland and am confident in our shared future.”
Switzerland Watch Stocks rose 1.97 per cent or 9.00 pence to 465.40 pence on Friday, having fallen around 9 per cent in the last year.
Shore Capital analysts Clive Black and David Hughes wrote in a note: “We view this move as a sensible move that adds to the Group’s capabilities while focusing on the UK and US markets.”
‘WOSG had a pretty torrid 2023/24 and key to a recovery in its rating is consistently meeting forecasts, highlighting continued investment in the store portfolio and the acquisitions of Coin and now Hodinkee.
‘Comparatives are now more favourable, which may yet be the springboard towards improved financial performance and share price, with the key to fulfillment being the prospect of sequential progress in annual earnings. ‘
Last month, Swiss Watches said it was “on track” to meet guidance for fiscal 2025 amid a recovery in demand for luxury watches and jewelry.
The luxury retailer and largest seller of Rolex in the UK revealed that “trading during the first 18 weeks of the financial year has been “in line” with expectations.
The FTSE 250 firm, which has 221 showrooms in the UK, US and Europe, said it has “seen a continued stabilization of the UK market in both luxury watches and jewellery”.
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