Audemars Piguet’s outgoing CEO François-Henry Bennahmias says he will hand over the company in glowing health with record sales.
He is expected to step away at the end of this year after a hand over period with incoming chief executive Ilaria Resta, who started work in August.
Mr Bennahmias has been at the helm for a decade, steering the privately-owned watchmaker to sales of over CHF 2 billion in 2022, according to estimates by LuxConsult and Morgan Stanley.
Patek Philippe’s sales at retail values are still higher than Audemars Piguets but, because AP retains more of the margin for each watch sold because of its boutique model, its turnover topped its closest competitor last year.
Demand has been cooling since early last year for Audemars Piguet for its signature Royal Oak steel sports watch.
Prices shot up for the ref. 15202ST after AP announced it would be discontinued in 2021, peaking at £106,000 in March last year, according to the Bloomberg Subdial Watch Index.
Today, the price has halved to £51,000, and even that may be on the high side.
A 2007 Royal Oak Jumbo sold on Watchcollecting.com at the end of last year for £46,250, and prices have continue to slide since.
This price drop has prompted watch traders to leave the model alone, which will please genuine watch lovers and collectors, but it has led to cooling demand in the primary market because the watch is tough to flip for an over-retail profit.
The current steel-on-steel Royal Oak Jumbo, ref. 16202ST, retails for £30,100, and WatchPro has heard from a number of retailers that waiting lists are down to just a few months for the watch.
If that has Mr Bennahmias, he wasn’t showing it in an interview with Bloomberg.
“At the end of July our inventory was the lowest ever,” he said. Adding that annual sales could climb by a double-digit percentage to CHF 2.4 billion this year.
Mr Bennahmias also revealed that AP’s rising production is likely see it increase supply from 50,000 watches today to up to 57,000 in 2025.
He also expects prices to rise by an average of 2-3% per year.
