RE: Late landing19 Jul 2024 23:07
I’m a time piece enthusiast and have seen that all luxury watch brands have gone off the boil , including Rolex.
During the pandemic and up to inflation sky rocketing , there was a community that built up , with spare cash to spend on premium goods, food and drink. People with time to research, experiment and no where to go.
So if you look across drinks, clothing brands, luxury items etc. the prices rocketed , even certain Nike trainers a premium aftershaves . There was demand and hype.
All of that went off the boil last year as things got back to normal and holidays and leisure became the priority
And since then these luxury items have lost their allure and are seen as over priced in a cost of living crisis .
No one in the watch community thinks the hype will ever return and I’m guessing for companies like Diageo the demand will return but not like before and not to the same levels. People are choosing cheaper alternatives for the foreseeable
The share price reflects the new reality and so is fairly priced at best, no a bargain to be compared to previous highs in a different market environment. If I buy in here it will have to be at a lower share price than this.