In 2017, Georges Kern resigned as head of watchmaking maisons at Richemont and took on the role of CEO at Breitling, just weeks after private equity firm CVC acquired the business.
Financial details of the deal were not disclosed but, a year later, Breitling’s turnover was estimated at CHF 360 million by Morgan Stanley in 2018.
That same year, rival TAG Heuer had estimated global sales of CHF 985 million in the same respected Morgan Stanley report, and seemed on course to join the revered club of brands turning over more than one billion Swiss francs.
2018 — the year Jean-Claude Biver retired from front line duty at the brand — turned out to be the high watermark for TAG Heuer.
The following year turnover dipped to CHF 857 million, if Morgan Stanley’s figures are correct.
Breitling was closing the gap in 2019 but was still almost half the size of TAG Heuer with sales of CHF 440 million.
The worst of the pandemic in 2020 accelerated the decline of TAG Heuer, with turnover dropping 31% to CHF 589 while Breitling was able to increase sales slightly from CHF 440 to CHF 479.
If his remit was to reverse declining sales at TAG Heuer, Mr Arnault can claim an early win as turnover was up 16% in 2021 to CHF 682 million as pandemic restrictions eased across the Western world and the Swiss watch industry had a record year.
But Breitling’s momentum was even stronger, with turnover rising by 42% to CHF 680.
TAG Heuer is still in the top 10 of Swiss watchmakers with Breitling kept at number 11.
But with just a fag paper between their 2021 turnover — CHF 682 million to CHF 680 million — it now looks like Breitling has just as strong a chance to make it into the billionaire brand list as TAG Heuer.
All data is from annual reports on the Swiss Watch industry by Morgan Stanley in collaboration with Geneva-based watch industry consultant LuxeConsult.