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New York, NY--Watches of Switzerland has reported a significant rise in secondhand Rolex sales in the US. The UK-based jeweler, expanding its presence in the US, saw a 14% increase in US sales during its fiscal fourth quarter, surpassing expectations.

[Image via Nickbeer/istock.com]

As per a report by Yahoo Finance, this announcement led to a 10% rise in Watches of Switzerland's shares.

David Hurley, deputy CEO and head of Americas, noted in an interview with the outlet that their two New York City locations, that entered the market in 2019, generated $100 million in revenue over the past year. The company reported $880 million in US sales during the same period.

The report added that a key driver has been the certified pre-owned (CPO) program for Rolex watches, which saw pre-owned and vintage revenue double in the fiscal fourth quarter compared to the previous year.

The report noted that despite a nearly 10% decline in Rolex prices over the last year, pre-owned watches have become Watches of Switzerland's second-largest category.

Hurley highlighted in the interview with Yahoo Finance that the Rolex CPO business's success had boosted confidence in the secondary market. The company projects that Rolex CPO sales could make up 20% of its revenue by the end of next year. Duffy expressed satisfaction with the market's support and the company's US projects, noting the stability and growth potential of the US watch market.

While Watches of Switzerland continues to invest in standalone stores, like their new Rolex store in Atlanta, Duffy acknowledged in the report that demand still exceeds supply.

Read the entire report in Yahoo Finance.