The value of Britain’s leading Rolex watch seller took a significant hit after the Swiss luxury brand acquired a competing retailer.
Today, Watches of Switzerland’s shares saw a record decline of up to 30% due to news that Rolex had purchased the jeweller and watch retailer, Bucherer.
This unexpected acquisition by Rolex announced late on Thursday, led market experts to speculate about the future dynamics between Watches of Switzerland and the luxury brand.
This unprecedented drop positioned Watches of Switzerland as the most significant decliner in the FTSE 250 today.
Peel Hunt adjusted its rating of the shares from “buy” to “hold”, hinting at a prolonged period of uncertainty regarding the implications of this purchase on the UK’s primary Rolex seller.
Jonathan Pritchard from Peel Hunt voiced concerns that this move might hinder Watches of Switzerland’s prospects in the long run.
