Yes. And for many other reasons.

Some luxury brands intentionally limit production of popular items and only sell them to their best customers. Since everyone wants the limited things, they buy lots of the lower tier, unlimited stuff to become a VIP customer and get offered a slot to buy a limited item. Ferrari is famous for limiting sales of their highest end cars to certain clients. High end hand bag producers limit sales of their most popular models to approved clients only. High end watches are similar as well.

If you can't afford all the extra stuff you had to buy along the way, you can try to resell it and get some of the cash back. If you need more cash, you can resell the limited availability items as well, often for a significant profit over the MSRP, even after the middleman's cut.

Fashionphile, The Real Real, Ann's Fabulous Finds, Yugi's Closet are all active companies in this space.

Many people use luxury goods as a medium to transport significant wealth around. You'll get questioned for bringing more than $10.000 in cash in or out of the UK or most of the western world. But you get an expensive watch and it'll likely slip.

The resale value on most luxury watches is terrible though.

People who don't like attention from law enforcement do.

Interestingly, cash is the most interesting thing for law enforcement because they can legally steal it.

If you have a lot of money coming in ... not sure you NEED to sell good for cash.

It's just a weird choice IMO.

I certainly have items that I could sell but don't want to deal with the time actually selling it.