WoS shares jump after buying watch fan platform Hodinkee
By Frank Prenesti
Date: Friday 04 Oct 2024
(Sharecast News) - Shares in Watches of Switzerland jumped on Friday after the company said it had bought Hodinkee, a specialist website for luxury watch enthusiasts, for an undisclosed sum.
The company on Friday said the deal was part of its plan to leverage growth opportunities and grab market share, "particularly in the fast-growing US market". WoS shares jumped more than 5% in London on the news.
Headquartered in New York and founded in 2008, Hodinkee offers digital print and video content, limited edition watch collaborations alongside watch and jewellery insurance services. It has an audience of 22.2 million annual unique visitors to its website with more than one million social media followers, WoS said.
On completion of the deal, WoS will integrate Hodinkee's existing commercial activities, including its limited-edition collaborations, with all retail traffic directed to Watches of Switzerland's US e-commerce site.
"This will give the group access to a captive and highly engaged luxury watch audience. The group will also integrate the functions behind Hodinkee's insurance agency business, which partners with global insurance provider Chubb, offering protection for luxury watches and jewellery," the company said.
AJ Bell investment director Russ Mould said retailers "need to find additional ways to attract, engage and persuade the shopper to part with their cash".
"That's why Watches of Switzerland has bought a media company which acts as a gateway for luxury watch fans. The more people read about a topic, the greater the likelihood they will want to spend money on a relevant product or service - or so the theory goes."
"Watches of Switzerland buying Hodinkee makes perfect sense. It obtains another channel by which to capture interest from people who like posh watches, and that becomes a platform to get them to transact and buy insurance as well."
Reporting by Frank Prenesti for Sharecast.com
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