Watches of Switzerland acquires Hodinkee: A new chapter for the watch market

Watches of Switzerland, a leading British seller of Rolex watches, has announced the acquisition of Hodinkee, a renowned American watch enthusiast website. This move will strengthen Watches of Switzerland’s online presence, particularly in the US market, according to CEO Brian Duffy. Although the financial details of the deal were not disclosed, it is known that the retailer is not assuming any debt as part of the transaction. Founded in 2008, Hodinkee has made a name for itself with high-quality editorial content about mechanical and premium watches. This has contributed to an increase in consumer interest in the US, which now represents the largest export market for Swiss watches. Despite its successes in editorial content, Hodinkee struggled with losses after entering the online market for pre-owned watches. The acquisition ends Hodinkee's brief and turbulent phase in the online pre-owned watch trade, which began with the purchase of Crown & Caliber. Since the decline in pre-owned watch prices in April 2022, Hodinkee has restructured its business and withdrawn from online sales. The collaboration with Watches of Switzerland will now focus on integrating Hodinkee's insurance business and editorial content. Hodinkee's founder, Benjamin Clymer, expressed no regret over past decisions and will focus on limited editions in collaboration with major brands in the future. The sale of Crown & Caliber is not part of the current deal but is expected to be sold to another buyer. The stock of Watches of Switzerland rose by up to 5.4% in London, although it has lost nearly a third of its value over the year. The deal promises to boost Watches of Switzerland’s annual revenue to over $2 billion, supported by the sale of certified pre-owned Rolex watches.