Analysts at Barclays corporate and investment banking arm have given a thumbs-up to this month’s price rise for Rolex watches.
An average price increase of around 2.5% across the Rolex catalog is a sign of a healthy market, according to Richard Taylor and Pallav Mittal.
“Investors are well-accustomed to price rises being a key feature of this attractive industry, but it is encouraging to see this continue given that we believe it will have no discernible impact on volumes,” the analysts say.
Rolex customers have been somewhat shielded from price rises over the past year because of the strength of the dollar.
The plunging value of currencies such as the UK pound and Europe’s euro at times made luxury goods over 20% cheaper on that side of the Atlantic.
This prompted Rolex and other Swiss watchmakers to hike prices in Europe to close the price differential.
Watches of Switzerland Group, a barometer for the luxury watch industry as a whole, has seen its shares rise sharply this year from 828p on the last trading day of 2022 to 921p today.