The Rabid Capitalist

Professor Glenn A. Okun

NYU Stern School of Business

September 5, 2023

There is trouble in luxury goods land.  Consumer discretionary goods firms’ financial performance is an indicator of the health of the consumer.  The luxury watch industry is displaying signs of strain.   Two major luxury watch retailers in the United States and Europe have begun restructuring their operations and laying off employees, following an extended decline in the value of luxury Swiss watches on the secondary market.

Hodinkee, an online watch retailer and news website owned principally by LVMH Luxury Ventures, is laying off nearly 20% of its employees as pre-owned watch prices decline.  It has been reported that the company has eliminated roughly two dozen positions.  Some of these layoffs may be related to the integration of Crown & Caliber, which was acquired in 2021.

Online luxury timepiece exchange In January, Chrono24 GmbH laid off approximately 13% of its personnel.

After surging during the pandemic, prices for many high-end timepieces on the secondary market, including Rolex, Patek Philippe, and Audemars Piguet models, have been declining for more than a year.