Rolex S.A. is technically a non-profit company, owned by the Wilsdorf Foundation, which was established by Hans Wilsdorf to commemorate his wife. The foundation was set up in 1945 and uses Rolex’s profits to fund philanthropic causes. Because of its non-profit status, the financial details of Rolex are not required to be disclosed to the public. However, it is estimated that Rolex’s annual revenue exceeds $13 billion with a profit margin between 20% and 40%. Most of this profit is reinvested in Rolex for expansion, with any remaining profits directed towards charitable efforts in various fields.
The Rolex brand is not just a prestige symbol, representing status and traditional craftsmanship, but is also indicative of a unique business model. Entirely owned by the Hans Wilsdorf Foundation, Rolex’s profits are directed towards charitable causes. Critics have questioned the company’s non-profit status due to the high cost of its watches and considerable revenue. Yet, it meets the legal criteria of a non-profit organization through its substantial donations to charitable causes.
Rolex is not publicly traded, and as a private entity under the Hans Wilsdorf Foundation, it continues to operate for profit. This structure allows the foundation to fund numerous projects in education, science, the arts, and watchmaking research without needing to disclose its financials or donation amounts to the public. Despite challenges, the Rolex brand maintains its position as a leader in the luxury watch market, with a business structure that ensures its profits are used to support charitable activities.