The head of Audemars Piguet said sales at the Swiss luxury watch brand are headed for another record this year as demand for its pricey timepieces remains strong.
Annual sales could climb by a double-digit percentage to 2.4 billion Swiss francs ($2.7 billion), outpacing the industry, said chief executive Francois-Henry Bennahmias at the company’s offices in Lausanne.
“At the end of July our inventory was the lowest ever,” he said.
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 50,000 watches a year at an average price of about 50,000 francs ($56,000) each.
It’s the No 4 Swiss brand by revenue, generating just over two billion francs in sales in 2022, mostly at its own branded stores, according to Morgan Stanley estimates.
Another record sales result would cap Mr Bennahmias’s more than 30-year career at the Swiss watchmaker, with over a decade as chief executive. He plans to step down at the end of this year, to be replaced by former Procter & Gamble executive Ilaria Resta.
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", Mr Bennahmias said. “I don’t think we have absolute optimism,” he added.
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. 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.
In response to rising watch theft, the brand earlier this year launched an unprecedented programme to guarantee buyers of its watches in 2022 and 2023 a replacement or refund if the timepieces are stolen.
While the service has led to millions of francs in insurance costs, the brand hasn’t yet been faced with a claim for a stolen or damaged watch, Mr Bennahmias said.
The watchmaker is increasing production by double-digit percentages annually, and raising prices by 2 per cent to 3 per cent a year on average, the chief executive said. Output could reach 56,000 or 57,000 watches a year by 2025.
Despite the higher production, shoppers looking for the most in-demand models may still find themselves on a waiting list. Audemars Piguet makes at most 1,450 of each model reference a year and just 1,000 of the most desirable models, such as the Royal Oak Jumbo with a blue dial, Mr Bennahmias said.
The Code 11:59 – a line launched in 2019 that divided some in the collecting community – now accounts for close to 15 per cent of revenue, he said.
The line is on track to reach 20 per cent of sales by 2025, reducing the brand’s dependence on the Royal Oak and its Offshore model spinoff.
Producing too many watches during good times, only to be left with excess inventory as demand falls off, has often been a critical error made by luxury watch brands. Mr Bennahmias said the company’s unsold inventory sits at record lows.
“That’s unheard of,” he said. “It means that we finally got it right in terms of our capacity.”
UAE currency: the story behind the money in your pockets
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Price, base / as tested From Dh173,775 (base model)
Engine 2.0-litre 4cyl turbo, AWD
Power 249hp at 5,500rpm
Torque 365Nm at 1,300-4,500rpm
Gearbox Nine-speed auto
Fuel economy, combined 7.9L/100km
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
The cost of Covid testing around the world
Egypt
Dh514 for citizens; Dh865 for tourists
Information can be found through VFS Global.
Jordan
Dh212
Centres include the Speciality Hospital, which now offers drive-through testing.
Cambodia
Dh478
Travel tests are managed by the Ministry of Health and National Institute of Public Health.
Zanzibar
AED 295
Zanzibar Public Health Emergency Operations Centre, located within the Lumumba Secondary School compound.
Abu Dhabi
Dh85
Abu Dhabi’s Seha has test centres throughout the UAE.
UK
From Dh400
Heathrow Airport now offers drive through and clinic-based testing, starting from Dh400 and up to Dh500 for the PCR test.
UAE players with central contracts
Rohan Mustafa, Ashfaq Ahmed, Chirag Suri, Rameez Shahzad, Shaiman Anwar, Adnan Mufti, Mohammed Usman, Ghulam Shabbir, Ahmed Raza, Qadeer Ahmed, Amir Hayat, Mohammed Naveed and Imran Haider.
more from Janine di Giovanni
Stats at a glance:
Cost: 1.05 billion pounds (Dh 4.8 billion)
Number in service: 6
Complement 191 (space for up to 285)
Top speed: over 32 knots
Range: Over 7,000 nautical miles
Length 152.4 m
Displacement: 8,700 tonnes
Beam: 21.2 m
Draught: 7.4 m
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The years Ramadan fell in May
Zayed Sustainability Prize
UAE currency: the story behind the money in your pockets
