The first quarter results of Richemont, the Swiss luxury group that just announced a new chief executive, illustrate a well-established trend in the luxury goods industry, with the group’s jewellery brands outperforming its watchmakers in the three months to end June 2024.

Dominated by Cartier and Van Cleef & Arpels, the Swiss group’s jewellery division eked out a 4% increase in sales, reflecting the strength of the group’s twin jewellery giants. Notably, the revenue growth was “supported by both jewellery and watches”, reflecting the brand equity of each jeweller has carried over into their respective watch offerings.

The three jewellery brands – the smallest is Buccellati – accounted for 70% of Richemont’s turnover. Although profit was not announced, the jewellers are also responsible for an even greater share of the group’s profits.

Watch weakness

In contrast, the watch division saw revenue fall 13%. Amongst the division’s brands are IWC, Panerai, Piaget, and Jaeger-LeCoultre. Interestingly, A. Lange & Söhne and Vacheron Constantin were singled out for their “resilience”.

Unsurprisingly, both are haute horlogerie brands that derive the highest proportion of revenue from in-house boutiques, as opposed to third-party retailers. Whether this resilience is durable is an open question, although odds are not in the brands’ favour given their respective product mix, sales strategies, and consumer sentiment.

Only available at boutiques

At a group level, wholesale revenue continue to decline, falling 5% to about a fifth of the group’s revenue, reflecting poor sentiment amongst third-party retailers. This also reflects the fact that most of wholesale revenue comes from watch sales, with the group’s jewellery brands largely selling through their own boutique networks.

In terms of geography, most regions grew healthily, with Japan posting a blowout 59% increase in sales, almost entirely attributable to the falling yen and inbound tourism. According to industry insiders, tourist spending now accounts for as much as half to three-quarters of sales for luxury brands in Japan. The rest of the Asia Pacific, however, saw an 18% fall in sales, illustrating the continued weakness of demand in China, Hong Kong, and Macau, which also plagued the Swatch Group’s recent half-year results.

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Among Tudor’s new releases for 2024, the most conservative is undoubtedly the Black Bay 41 METAS ref. 7941A1A0NU, which offers a monochrome, black-and-white alternative to the gilt-and-burgundy ref. M7941A1A0RU-0003 introduced last year.

Initial thoughts

The new Black Bay 41 (BB41) feels instantly familiar. In fact, it’s a little surprising that it wasn’t already in the collection, being about at straightforward as a contemporary dive watch can be. But what it lacks in surprise, it makes up for in simple, tangible quality.

While the BB41 was the original Black Bay – launched a dozen years ago now – it now sits atop a range that also includes the smaller Black Bay 58 and even more compact Black Bay 54. The BB41 METAS’ dimensions of 41 mm by 13.6 mm thick mean it wears similar to a modern Rolex Submariner; those looking for vintage proportions should consider the BB58 and BB54.

Of course, the big news is METAS certification for the MT5602-U movement, which now carries a “U” suffix to identify it as a METAS-certified Master Chronometer.

The differences from the standard MT5602 used to date are likely minimal, since the movement has always had a silicon hairspring, one of the most important features for resisting the METAS standard’s 15,000 gauss anti-magnetism test. The difference, therefore, is that the movement’s high-performance specs have been confirmed by an independent test.

Tudor is all about value, and the BB41 METAS is no exception. Available with two different bracelet options or a rubber strap, the watch is priced between US$4,225 and US$4,550. It’s hard to think of alternatives that offer similar quality at this price point, and the biggest competition will likely come from its own siblings, the BB58 and BB54.

Small enhancements make a difference

In many ways, Tudor is following sister-brand Rolex’s playbook for incremental improvement, albeit slightly faster. One area where this is clear is the crown, which now eschews the colour-matching aluminium crown tube that characterised earlier models.

This upgrade also includes a more substantially serrated crown that is both easier to use and also happens to more closely resemble a Rolex crown, enabling it to catch the light more dramatically.

This new crown debuted with last year’s burgundy release, and the extra grip helps contribute to a very easy-to-operate screw-down crown.

Although the black-and-white combination gives the watch a monochromatic aesthetic at a distance, the dial has a radially brushed finish that Tudor doesn’t employ often, instead preferring a matte graining.

The brushed finish gives the dial slight reflectivity, and also shifts its colour to very dark grey at certain angles. This makes the dial a bit more interesting than if it were a flat, matte black.

Mix and match

The BB41 METAS is available with three different bracelet and strap options, though each feature’s the brand’s proprietary adjustable clasp, called “T-Fit.” Adjustable clasps are just about mandatory at this price point, but it’s surprising to see it included with the rubber strap option as well. This makes the strap feel as well-considered as the bracelets.

Beyond the rubber strap, buyers can choose between a five-link Jubilee-style bracelet or a three-link Oyster-style bracelet with a stepped taper and faux rivets.

While I don’t like the stepped taper or the faux rivets, I really appreciate that Tudor has opted for female end links, which shorten the effective lug-to-lug length and should help ensure a good fit on most wrists.

Closing thoughts

The BB41 METAS is a compelling watch on paper, and very satisfying in operation. It is also a value buy, with fit and finish on par with pricier competitors. But… the same can also be said for many other Tudor watches, which provide stiff competition. And that’s perhaps the only failing of the new BB41; it verges on the generic and doesn’t stand out from its stablemates. In other words, it is catered to someone who wants a no-fills diver in low-key livery.

Key facts and price

Tudor Black Bay 41
Ref. 7941A1A0NU

Diameter: 41 mm
Height: 13.6 mm
Material: Steel
Crystal: Sapphire
Water resistance: 200 mm

Movement: Cal. MT5602-U
Features: Hours, minutes, and seconds
Frequency: 28,800 beats per hour (4 Hz)
Winding: Automatic
Power reserve: 70 hours

Strap: Steel bracelet (five link or rivet-style) or rubber strap

Limited edition: No
Availability: Now at Tudor boutiques and retailers
Price:
Steel and rubber strap: US$4,225
Steel and rivet-style bracelet: US$4,425
Steel and five-link bracelet: US$4,550

For more information, visit Tudorwatch.com.

Vacheron Constantin will soon stage From Geometry to Artistry in Singapore, an exhibition to showcase the brand’s latest timepieces launched Watches & Wonders 2024, as well as an interactive kinetic artwork by design studio Lanzavecchia + Wai.

According to Vacheron Constantin, the new timepieces for 2024, ranging from the Traditionnelle to the Overseas, demonstrate artistry inspired by geometric shapes, hence the exhibition’s title, From Geometry to Artistry. The exhibition will take place in 48 Bukit Pasoh from July 22-28, 2024. It’s open to the public, but registration online is required.

This year’s Vacheron Constantin Overseas Dual Time with a green dial.

La Bonsaï, the kinetic artwork by Lanzavecchia + Wai, was created in response reaction to exhibition’s theme. La Bonsaï is a mechanical bonsai-planétaire that goes into motion when guests touch the jewel-like plant.

Each branch of the artwork is inspired by Vacheron Constantin’s signature finishes, components, and movements, including  a large blue disc on the trunk of the bonsai references the sunburst, satin-finish dial of the Patrimony, as well as a sphere on the base of the plate that orbits the trunk, a nod to the moon phase display.

La Bonsaï, 2024 by Lanzavecchia + Wai.

From Geometry to Artistry 

Open daily to the public
July 22-July 28, 2024
2:00 pm-9:00 pm

48 Bukit Pasoh Road
Singapore 089859

For registration, visit vacheron-constantin.com.

The owner of brands like Omega and Longines, the Swatch Group just announced its results for the first half of 2024. The half-year numbers crystallised a slowdown that the watch industry has felt since late 2023.

Revenue was down 14.3% to CHF3.44 billion, while operating profit plunged 70% to just CHF204 million, giving the group an operating margin of just 5.9%, compared to 17.1% from a year earlier.

According to Swatch, the fall in revenue was “triggered by the sharp drop in demand for luxury goods in China (including Hong Kong SAR and Macau SAR)”. At the same time, wholesale sales fell over 10%, indicating that third-party retailers are ordering less watches from the group’s brands, which in turn indicates the retailers’ pessimism for the short- and medium term.

Swatch also explained the poor results by noting the group did not “make any redundancies… [and] maintaining all production capacities and not laying off qualified staff”. This was done so that “the Group [will] recover more quickly and benefit more significantly from the next upswing.” The progressively weakening positions of each of the group’s brands relative to the competition – marques like Breguet and Blancpain stand out in this regard – imply this might be overoptimistic.

Notably, Swatch stated “the Swatch brand bucked the negative trend” thanks to the bestselling MoonSwatch, but this was not (and will not) be sufficient to help the rest of the group given the low value of Swatch watches.

Despite the produce several million units a year, the average CHF100 or so price of each watch means the entire Swatch brand turns over CHF500 million at best, while having a smaller margin than its luxury siblings of the group.

Watches on the books

As significant as its sales and profit figures is the group’s balance sheet, which shows inventories of CHF7.71 billion. Mostly made up of finished products, namely watches and jewellery, carried on the books at cost, inventories are equivalent to almost a full year’s revenue. But because they are valued at cost, inventories are equal to several years’ sales (between four to five, or even more).

In comparison, major luxury groups that publish their numbers have annual sales that are multiples of inventories, as high as nine to ten times. The implication of this is stark: Swatch Group is likely producing far more watches than it can sell, even accounting for a potential future “upswing”.

For the full report, visit Swatchgroup.com.