THE boom in demand for Rolex watches and a lack of sufficient supply is driving sales of other luxury timepieces, the head of retailer Watches of Switzerland Group said.

While sales of stalwart, high-demand Swiss luxury brands Rolex, Patek Philippe and Audemars Piguet showed a "modest" increase in the retailer's 2022 fiscal year amid scarce supplies, sales of other watch brands surged, chief executive officer Hugh Brian Duffy said in an interview.

"We more than doubled our increases with them," Duffy said, citing brands such as Richemont's Cartier, Swatch Group's Omega, LVMH's Tag Heuer, Rolex sister brand Tudor and independent Breitling.

The retailer, with 171 stores in the UK and US, said demand for certain Cartier and Tudor models is particularly strong.

"We can't get enough Santos," Duffy said of the Cartier aviator watch. "We can't get enough Tudor," particularly the brand's chronograph models, he added.

Sales of luxury watches jumped during the pandemic as cash-rich consumers directed funds usually spent on travel and entertainment toward high-end timepieces. Retailers benefited with soaring sales online and in stores once they reopened.

A NEWSLETTER FOR YOU

Friday, 2 pm

Lifestyle

Our picks of the latest dining, travel and leisure options to treat yourself.

Sign Up

Watches of Switzerland's full-year revenue rose 40 per cent to £1.24 billion (S$2.1 billion) at constant currencies, the company said Wednesday. It forecast revenue of £1.45 billion to £1.5 billion for 2023.

Still, the shares fell as much as 4.1 per cent in early London trading, bringing the decline this year to almost a third as markets slumped and some investors bet the dynamic that drove sales during the pandemic will fade. The stock has more than tripled over the previous 2 years.

Prices for Rolexes and some other luxury Swiss brands are starting to plateau or decline slightly on the second-hand market after a feverish rise.

Despite that effect, and the hit from plunging stocks and cryptocurrencies, Duffy said retail demand for Rolex, Patek Philippe and Audemars Piguet watches continues to outstrip supply.

"Demand is just off the scale for those brands. We would love to have more of them," he said. BLOOMBERG