Story Highlight
– Pre-owned luxury watch prices spiked after U.S. tariff announcement.
– Global sales of Patek Philippe watches doubled to $87 million.
– Secondhand Rolex sales increased 14% to $140 million.
– U.S. pre-owned watch sales fell 41% in late August.
– Swiss watch exports dropped 16.5% in August year-over-year.
Full Story
The announcement of substantial tariffs on Swiss imports by the U.S. government in August led to a temporary increase in prices and listings for luxury pre-owned watches from renowned brands such as Patek Philippe, Audemars Piguet, and Rolex. However, this increase proved fleeting, as data from Everywatch indicates that market demand stabilised following an initial surge.
During the week the tariffs were disclosed, global sales of pre-owned Patek Philippe watches surged to $87 million, more than doubling from $43 million in the preceding week. Similarly, sales of second-hand Rolex watches rose from $107 million to $123 million during the same timeframe. Following the implementation of the tariffs on August 7, further analysis from Everywatch showed that sales of used Rolex watches climbed by 14% to $140 million in the subsequent week.
The increase in sales was predominantly observed among high-end brands. Notably, pre-owned watches from Audemars Piguet, Richard Mille, and Chopard also experienced gains. Conversely, brands with mid-tier pricing, including Cartier, showed less fluctuation during the period surrounding the tariff announcement and its aftermath.
Despite the initial spike in volume and average prices, Everywatch reports a sharp decline in both sales volume and average prices by the end of August, particularly in the U.S. and Hong Kong markets. Specifically, sales of pre-owned watches in the U.S. plummeted by 41% in volume and saw a 14% drop in average price during the final week of August compared to the prior week.
Everywatch’s data, derived from public listings and sales information, offers insights into the reactions of both buyers and sellers to the newly imposed tariffs of 39% on Swiss goods entering the U.S. market. It highlights a quick bolstering of activity in the secondary watch market but was soon followed by a retreat as buyers resisted elevated prices and sellers reduced their listings, particularly within the U.S. Nonetheless, sales of many luxury brands, including Audemars Piguet and Richard Mille, have remained fairly robust globally despite the pullback in the U.S. market.
In light of the tariffs, several high-profile Swiss brands, such as Blancpain and Jaeger-LeCoultre, are adjusting prices for their new collections in the U.S. to mitigate the financial impact.
In August, Swiss watch exports experienced a significant downturn, with a decline of 16.5% year-on-year. Notably, exports to key markets saw a steep drop, with shipments to the U.S. falling by 24% and those to mainland China decreasing nearly 36%. For the first eight months of the year, overall Swiss watch exports have seen a slight decline of approximately 1%, totalling CHF 17 million compared to the previous year, according to the Federation of the Swiss Watch Industry.