Better, but not Good Enough

The results are in, and if we look at the graph we can see is that the needle moved just a tiny little bit north.  And that is good.  But when looked at holistically, it is clear that a massive turn around is not in foreseeable future.   The US posted an increase of 4.5%.  Now again, that is a good bit of news.

Courtesy of the FH

But, as always, we have to look at the entire picture.  And while the US clawed back some sales, Hong Kong dropped even further into the mire posting a loss of - 39.6%.

Now the other curious number is the incredibly fast paced growth of the UK market.  It is now up  +32.4%.  I'm a reasonable guy, but this type of growth is a little curious.  While it is entirely possible that such a large number of watches are heading to the UK from Switzerland, it does beg the question as to whether or not all of those watches are going out the front door of your friendly neighborhood retailer, or has the UK begun to emerge as the next grey market / trans shipping?  

Sales are good, they are important.  But in the mad dash to move units one way or another, a lot got pushed aside or brushed under the carpet.  And that is what led us to where we are now - an oversaturated marketplace with too many watches washing around and not enough people ready to buy them at the full price.

We shall wait, and we shall see.