Why Audemars Piguet is headed for record sales despite inflation: François-Henry Bennahmias, CEO of the luxury watchmaker, said its Royal Oak model continues to attract buyers even as economies cool

Sep 7 , 2023

Audemars Piguet is expected to hit record sales as demand for luxury watches remains stable. Photo: Instagram

Audemars Piguet boss François-Henry Bennahmias said that the Swiss luxury watchmaking brand is set to achieve some record highs, with annual sales expected to climb to a double-digit percentage

AP is part of the ‘holy trinity’ of Swiss watchmaking, along with Patek Philippe and Vacheron Constantin; Bennahmias will step down to be replaced by former Procter & Gamble Co. exec Ilaria Resta

The head of Audemars Piguet said sales at the Swiss luxury watch brand are headed for another record in 2023 as demand for its pricey timepieces remains strong.

“At the end of July our inventory was the lowest ever,” chief executive officer François-Henry Bennahmias said in an interview at the company’s offices in Lausanne, Switzerland. Annual sales could climb by a double-digit percentage to 2.4 billion francs (US$2.7 billion) this year, outpacing the industry, he said.

Audemars Piguet Royal Oak Offshore “End of Days”. Photo: Audemars Piguet

Audemars Piguet’s timepieces, led by its flagship Royal Oak model, are still attracting buyers as economies cool and even some well-heeled consumers feel the pinch from inflation.

A member of the “holy trinity” of Swiss watchmaking, known for producing highly complicated and fastidiously finished timepieces that includes Patek Philippe and Vacheron Constantin, Audemars Piguet produces some 50,000 watches a year at an average price of about 50,000 francs apiece. It’s the No 4 Swiss brand by revenue, generating just over 2 billion francs in sales in 2022, mostly at its own branded stores, according to Morgan Stanley estimates.

Another record sales result would cap Bennahmias’ more than 30-year career at the Swiss watchmaker, with over a decade as CEO. He plans to step down at the end of this year, to be replaced by former Procter & Gamble Co. executive Ilaria Resta.

Audemars Piguet CEO François-Henry Bennahmias. Photo:

Record sales aside, the French-born former professional golfer sees reasons for caution. Audemars Piguet’s strength “doesn’t mean that the world couldn’t go into a slightly more troubled time”, Bennahmias said. “I don’t think we have absolute optimism.”

He cited the slowing global economy, Russia’s war on Ukraine and challenges in China, where a post-Covid rebound has been weaker than anticipated. What’s more, prices for used models have tumbled after a surge during the pandemic.

An index of Audemars Piguet watches compiled by WatchCharts is down almost 20 per cent in a year and 8.8 per cent in six months, even as more than three-quarters of the brand’s second-hand models continue to fetch prices above retail.