Audemars Piguet Tops Patek Philippe in Revenue, Report Says

(Bloomberg) -- Audemars Piguet overtook rival Swiss watchmaker Patek Philippe by revenue for the first time while industry giant Rolex SA racked up its best year ever, according to a report on the Swiss watch industry.

The report, published by Morgan Stanley, underscores how demand is shifting toward a select few high-end brands including Richemont’s Cartier. It also shows a loss of market share for lower-priced labels from Swatch Group.

Deep-pocketed buyers who saved cash canceling travel plans during the pandemic have been driving a rebound in sales of high-end Swiss timepieces. Family-owned and controlled, the nearly 150-year-old Audemars Piguet, known for its Royal Oak model, is one of the three biggest independent Swiss watch brands, along with Patek and Rolex.

Morgan Stanley’s annual watch sector report, closely followed by the industry, showed buyers increasingly gravitated to a handful of top brands. Watches priced above 3,000 francs accounted for 73% of sales but just 11% of exports by unit. 

Sales of Richemont’s Cartier and Vacheron Constantin watches gained 40% and 53% respectively, and Cartier unseated Swatch’s Omega to move into second place in 2021. After years of market share losses, Richemont’s watchmakers division boosted its overall market share to 10%, Morgan Stanley said.

Share Donor

Swatch’s brands have lost a combined 4.5 percentage points of market share since 2019, making them “the main market-share donor in the industry,” the Morgan Stanley analysts said. In addition to its pricey Omega and Breguet brands, the company also produces lower-priced timepieces under labels including including Tissot, Hamilton and Mido. The company’s market share dropped to about 22% last year, according to the report.  

Audemars Piguet had sales of 1.58 billion francs ($1.7 billion) topping Patek’s 1.53 billion francs.  

With 2022 marking the 50th anniversary of the Royal Oak model, Audemars Piguet will probably have another record year, said Oliver Mueller of LuxeConsult an industry consultant who contributed research to the Morgan Stanley report.  

Rolex, Audemars Piguet and Patek combined accounted for 41% of the Swiss watches sold in 2021, up from 37% in 2019, the report estimated.

Sales at Geneva-based Rolex, known for its Daytona and Submariner models, rose to a record 8 billion francs in 2021, cementing the brand’s top spot in the industry with a 29% market share.

©2022 Bloomberg L.P.