Watches of Switzerland Group to buy Roberto Coin’s US ops

blog image

The fashion sector is currently witnessing an explosion in demand for Italian jewelry businesses. The Watches of Switzerland Group (WOSG) of the United Kingdom has made news once again after Richemont’s announcement that it would acquire Vhernier. WOSG paid an incredible $130 million to acquire Roberto Coin Inc., the American subsidiary of the famous Italian brand.

This transaction reflects WOSG’s dedication to growing its portfolio in this profitable market area and is a major step forward in its strategy for premium branded jewelry. Known worldwide for its superbly made ruby-encrusted jewelry, Roberto Coin S.p.A. was established in the Italian city of Vicenza. In the United States, its analogue is the sixth most valuable jewelry brand.

As a result of the purchase, Roberto Coin Inc. will have the sole and permanent right to import and sell the jewelry brand across the Americas, including the Caribbean, Central America, and the United States. The Coin family will keep a seat on the board and Peter Webster will continue as president of Roberto Coin Inc., so the company will continue to operate independently inside WOSG even after the acquisition.

Commercially, the purchase is in line with WOSG’s long-term goals since it allows the company to access the enormous potential of the precious jewelry industry in the United States. Roberto Coin competes with industry heavyweights like Bulgari, Cartier, and Tiffany & Co. in the US market. It has more than 400 points of sale, including large department shops, jewelry chains, and small businesses.

The fact that WOSG has decided to branch out into high-end branded jewelry shows that it has seen how customer tastes are changing. Branded goods are becoming increasingly popular in the worldwide luxury jewelry industry. WOSG plans to take advantage of this trend by strengthening its position in the US luxury branded jewelry sector.

The goal of WOSG’s strategy for Roberto Coin Inc. is to increase sales through wholesale distribution and direct-to-consumer channels by capitalizing on the company’s experience in selling high-end brands. The firm plans to increase its profit margin by increasing its high-end Roberto Coin Collection and by acquiring products directly from Roberto Coin S.p.A.

Peter Webster will continue to manage WOSG as it expands its wholesale network in the US, aiming to reach independent retailers and investigate international market potential. In addition, the business intends to expand its retail presence by opening more franchise stores and monobrand boutiques, as well as by adding more points of sale to its existing showroom inventory.

To boost brand awareness and customer interaction, WOSG is also planning to invest in marketing campaigns, some of which will use digital platforms. The deferred payment structure of the acquisition, which is reliant on future profitability, shows that WOSG is confident in Roberto Coin Inc.’s growth potential.

For the audited fiscal year ending December 31, 2022, Roberto Coin Inc. recorded strong financial performance, with $146.2 million in yearly revenues and $30.1 million in pre-tax profits. Revenues reach $138.7 million in 2023, according to preliminary unaudited statistics, indicating continuous growth.

Brian Duffey, CEO of WOSG, has voiced his excitement over the acquisition in light of these developments, praising the brand’s popularity and growth prospects in the US market. The importance of WOSG’s retail expertise in driving growth and enhancing the Roberto Coin brand’s reputation in North and Central America was highlighted by him. Positioned for continued success in this competitive market segment, the acquisition emphasizes WOSG’s ambition and momentum in the luxury branded jewelry category.


avatar
Ethan Sullivan

Ethan's penchant for the pulse of the fashion world extends to covering lifestyle topics, offering readers a seamless blend of the latest style updates and lifestyle trends.

Read more