After a surge in pandemic profits, Rolex, Patek Philippe and Audemars Piguet face a significant downturn as sales slip—extending a two-year decline

The Bloomberg Sabdial Watch Index, which tracks the 50 most-traded hours by value, fell less than 1% in June. It has fallen 8% in a year and 23% in the past two years, according to data provided by Sabdial, a U.K.-based firm. Watch trading platform This contrasts with a 27% rise in the Standard & Poor’s 500, the US stock market index, last year.

Major Swiss brands including Rolex, Patek Philippe and Audemars Piguet have seen a dramatic turnaround after soaring to record highs on the secondary market in early 2022, as shoppers stuck at home poured their pandemic savings into expensive watches. In the 12 months through June 2022, the Bloomberg Watch Sub-Index has risen 40%, while the S&P 500 has fallen about 1%.

While many of the most widely traded models continue to change hands above retail prices, speculators who flocked to the market in the hope that watches would continue to rise have been squeezed out of the market as stocks and other investments offer better returns.

Even during a recession, some brands are gaining in price. The Cartier watch index has risen about 2% in a year, as watches made by the French jewelry brand owned by Richemont have become more popular with collectors. Cartier watches are generally less expensive than Rolex, Patek or Audemars Piguet, and tend to be priced below retail.

In June, Rolex models, which make up the majority of the index, remained largely flat, while prices for sister brand Tudor declined. Data from Sapphire showed that prices for low-cost luxury watches, as well as Swatch Group’s Omega and Cartier’s indexes, rose modestly during the month.