Audemars Piguet Appoints Ilaria Resta as New CEO

[1William]

I do not understand not having a watch person as the CEO. These are the kind of moves that can significantly impact a brand in so many ways that are never seen until there is a significant shift. I know the mentality is a highly trained executive can work in any field as the principles of business are the same. At the base that might be true but without the passion and understanding it will be difficult.

[VogelPhoenix]

Originally Posted by HMHM

Honestly, if AP does end up with LVMH, the first sign it was happening would be the appointment of Alessandro Bogliolo as the chair of AP…. Since his appointment until today, I remain sceptical of what he is bringing to the AP table….

I was getting ready to argue with all the negative nancys in this thread and elsewhere, but now can't help but wonder. Bogliolo was at Bulgari when they were sold to LVMH in 2011 and CEO at Tiffany when they were sold to LVMH in 2017. Resta is a "brand builder", whose last gig at a privately held Swiss company ended with their sale ("merger of equals" bla bla) to a Dutch multinational. It is hard to look at the transition from Jasmine Audemars and FHB to Bogliolo and Resta, and convince oneself that they were chosen to shape an exciting, independent future for AP, rather than riding the current line-up and "building the brand" to a profitable sale.

[bwdellorf76]

Yeah, with this new hire and with board being chaired by Bogliolo (former Tiffany Boss that was sold to LVMH), it appears to me that the company is being cleaned up for a sale. LVMH really needs a high-end watch brand and AP fits the mold. Richemont has Vacheron. LVMH needs AP as the holy trinity brands consolidate. Keep an eye out and see if AP starts to be the only brand with the Tiffany & Co stamp!! I am predicting that this will come once the current deal with Patek expires. Patek also went all out with the "last ever" 5711 with the Tiffany dial. Big and potentially last splash with Tiffany collaboration.

[Tomas Eriksson]

Apple Watch is not gala attire! This is only a few months back...

[HMHM]

Originally Posted by VogelPhoenix

I was getting ready to argue with all the negative nancys in this thread and elsewhere, but now can't help but wonder. Bogliolo was at Bulgari when they were sold to LVMH in 2011 and CEO at Tiffany when they were sold to LVMH in 2017. Resta is a "brand builder", whose last gig at a privately held Swiss company ended with their sale ("merger of equals" bla bla) to a Dutch multinational. It is hard to look at the transition from Jasmine Audemars and FHB to Bogliolo and Resta, and convince oneself that they were chosen to shape an exciting, independent future for AP, rather than riding the current line-up and "building the brand" to a profitable sale.

The main thing I don’t understand is this - why didn’t Olivier Audemars replace Jasmine Audemars as Chair of the board after she vacated the seat? That for me is the biggest red flag. Instead they rather get this guy Bogliolo when Olivier was already Vice Chair of the board. Promoting him would have been an easy solution. And from my understanding, Olivier Audemars has a greater understanding of watches than Jasmine herself….

[LUDA]

Originally Posted by VogelPhoenix

I was getting ready to argue with all the negative nancys in this thread and elsewhere, but now can't help but wonder. Bogliolo was at Bulgari when they were sold to LVMH in 2011 and CEO at Tiffany when they were sold to LVMH in 2017. Resta is a "brand builder", whose last gig at a privately held Swiss company ended with their sale ("merger of equals" bla bla) to a Dutch multinational. It is hard to look at the transition from Jasmine Audemars and FHB to Bogliolo and Resta, and convince oneself that they were chosen to shape an exciting, independent future for AP, rather than riding the current line-up and "building the brand" to a profitable sale.

These are really key points, and I don't like how they sound...

[Reign]

Originally Posted by HMHM

The main thing I don’t understand is this - why didn’t Olivier Audemars replace Jasmine Audemars as Chair of the board after she vacated the seat? That for me is the biggest red flag. Instead they rather get this guy Bogliolo when Olivier was already Vice Chair of the board. Promoting him would have been an easy solution. And from my understanding, Olivier Audemars has a greater understanding of watches than Jasmine herself….

It’s easier for the family to blame someone for something going wrong vs one of their own. It’s an abdication of responsibility effectively. You see this in a lot of family owned companies

Y’all got me thinking about the potential sale and the folks involved. I would suggest (and myself included) folks express their disapproval of a sale to their SAs, boutique managers, regional reps, corp - pretty anywhere someone has a line, we need to express it.

If a sale does happen, I’ll be out asap


Sent from my iPhone using Tapatalk

[Napaswar]

Originally Posted by LUDA

These are really key points, and I don't like how they sound...

Same here but can't deny Bulgari got interesting pieces in the past 10 years from the Octo collection and Tiffany has been more in-trend and in demand from the new generation although they lost some exclusivity which is the significant core for luxury brands.

Still love AP as an independent but we'll see what's coming in the future.

[LUDA]

Originally Posted by Napaswar

Same here but can't deny Bulgari got interesting pieces in the past 10 years from the Octo collection and Tiffany has been more in-trend and in demand from the new generation although they lost some exclusivity which is the significant core for luxury brands.

Still love AP as an independent but we'll see what's coming in the future.

That's true, it's been good for Bulgari, but AP doesn't need that, they are not at that point.

The last few years have been good at AP, and finally the Code 11.59 is picking up and becoming a decent new line.

[macrowatch]

Originally Posted by Reign

It’s easier for the family to blame someone for something going wrong vs one of their own. It’s an abdication of responsibility effectively. You see this in a lot of family owned companies

Y’all got me thinking about the potential sale and the folks involved. I would suggest (and myself included) folks express their disapproval of a sale to their SAs, boutique managers, regional reps, corp - pretty anywhere someone has a line, we need to express it.

If a sale does happen, I’ll be out asap


Sent from my iPhone using Tapatalk

I fear the foothold is already there so doesn’t matter what the feedback is. Think it’s only a matter of time before they get more shares or more votes to seal the deal.

Would the son that’s running Tag running AP be a bad thing? I’m genuinely not sure since he seems to be doing a pretty good job with Tag.

[HMHM]

Originally Posted by macrowatch

I fear the foothold is already there so doesn’t matter what the feedback is. Think it’s only a matter of time before they get more shares or more votes to seal the deal.

Would the son that’s running Tag running AP be a bad thing? I’m genuinely not sure since he seems to be doing a pretty good job with Tag.

I think he’s running Tag to the ground the way he’s doing. Mario Kart? Give me a break! Man made diamonds Tag Heuers for 500k? He’s taking the piss on watch enthusiasts!

The son running the LV watch department seems to have a better appreciation of watches and I think he has been instrumental in the creation of some LV watch prize or something (correct me if I’m wrong). But if AP is going the route of Tag, AP is DOA following LVMH merger. As simple as that! Decades of history of fine timepieces (QP, Starwheel, RO) now going to be infused with Mario Kart DNA…. And we will all cringe and be in despair….

I sincerely hope it does not happen. VC is a great example of how things go downhill following merger with a conglomerate…. And despite all the positive sounds coming from VC, the ties to Richmond has severely handicapped it

[LUDA]

Originally Posted by HMHM

I think he’s running Tag to the ground the way he’s doing. Mario Kart? Give me a break! Man made diamonds Tag Heuers for 500k? He’s taking the piss on watch enthusiasts!

The son running the LV watch department seems to have a better appreciation of watches and I think he has been instrumental in the creation of some LV watch prize or something (correct me if I’m wrong). But if AP is going the route of Tag, AP is DOA following LVMH merger. As simple as that! Decades of history of fine timepieces (QP, Starwheel, RO) now going to be infused with Mario Kart DNA…. And we will all cringe and be in despair….

I sincerely hope it does not happen. VC is a great example of how things go downhill following merger with a conglomerate…. And despite all the positive sounds coming from VC, the ties to Richmond has severely handicapped it

99% sure those 2 are the same son, Frederic Arnault. So the one that destroyed TAG and the one running the LV watch department and re-launching the Gerald Genta brand are the same.

PS: I wouldn't talk much about Mario Kart knowing the Black Panther AP is a thing.

[RTG]

Originally Posted by Vivalas

I say good luck to her and I wish her great success at AP. The decision to appoint her had been made and AP clearly think she’s the right choice, so only positivity from me

Right female choice anyway. They eliminated 50% of potential candidates by only considering women. So the 'best' candidate, wasn't their top priority.

[Nav01L]

Originally Posted by LUDA

99% sure those 2 are the same son, Frederic Arnault. So the one that destroyed TAG and the one running the LV watch department and re-launching the Gerald Genta brand are the same.

PS: I wouldn't talk much about Mario Kart knowing the Black Panther AP is a thing.

Don’t forget Spiderman

[Nav01L]

I don’t know about all the negativity and merger fears here, couldn’t it just be that the family has reached an age where they‘d prefer that the intense jobs be taken care of by others? Olivier Audemars is around 64 if I recall correctly, he may well enjoy the role he has right now as it is.

As for their choice of candidate, all I know is some of the biggest AP enthusiasts I know personally are Women that don’t have top jobs within the watch industry, but make a very significant living in other fields.

She may well have more experience with the brand than any of us, who knows. Her wearing an Apple Watch in public can have all sorts of reasons. I don’t wear anything more fancy than a simple Rolex either when I could end up in a picture a client could come across, let alone in business settings.

[Ruby Red]

The worries of AP being sold to LVMH has some meat to it. Since LVMH aren't buying Richemont, they need a luxury watch brand that's a heavy hitter.

Earlier this month:
Rupert shot down suggestions that bigger rival LVMH had its sights set on acquiring Richemont, which in addition to Cartier and Van Cleef & Arpels, owns a slew of high-end luxury watch brands. Rupert said he has had frequent discussions with LVMH Chairman Bernard Arnault, but that Richemont was not for sale.

“We’re in constant dialogue and we respect each other’s independence,” he said of LVMH.

Richemont also decided against a deal with Kering SA two years ago when investment bankers proposed one, Rupert said. “Why would we want to? We know what we have,” he said.

References: Business of Fashion

[ts3]

Originally Posted by LUDA

99% sure those 2 are the same son, Frederic Arnault. So the one that destroyed TAG and the one running the LV watch department and re-launching the Gerald Genta brand are the same.

PS: I wouldn't talk much about Mario Kart knowing the Black Panther AP is a thing.

Jean is running the LV watch department...

[In-N-Out]

If a deal with LVMH is in consideration, I would imagine LVMH would want a hand in selecting the CEO. Unless LVMH likes Resta’s profile, I don’t think it’s likely AP appoints a new CEO only to have her work on a transition. Also, the fact that Francois is staying on until end of the year suggests he really wants a smooth transition for her. He wouldn’t have done that if a merger is in the works….meaning he wouldn’t care too much about transitioning her since the dynamic, culture, challenges ahead would be drastically different anyway.

[Harry_S]

As Tony Soprano says when he visits Italy and his hometown mafia has a female as the head “A woman Boss!??? Not in my day” lol seriously though times have changed and I welcome the new CEO. What worries me more is talk of a potential sale and AP losing its independance, this would indeed be a fatal mistake for the brand. I echo what was said earlier that Vacheron really went downhill since being part of Richemont as all they care about is the total sales per quarter cycle which is evidenced by you can buy most of their watches at mrporter.com bar the ultra complications, Overseas and novelties like the 222.
Their watchmaking is still intact and exemplary but they have devalued/continue to demote their status by chasing bottom line sales.

[XFi1382]

Interesting conversation to follow... whilst the choice of new CEO definitely puts a focus on BRAND, this doesn't necessarily point to a sale to LVMH / Richemont. AP just doesn't need that... what advantages does it give them over PP / RM / VC? They don't need better distribution, supply chain, demand, ... In fact it makes them less premium.

My sense is that the focus of the new CEO's will be on:
- Distribution model + in-store experience
- Rewarding loyalty vs. new customers
- Building out the Code 11.59 line (I personally can't wait for a 39mm version!)
- Marketing strategy: ambassadors, social media, ...
- Improving margin / free cash flow

Unless the founding families are willing to trade off a huge pay day vs. further building their brand, I don't think a sale is coming soon... Fingers crossed!

[Nav01L]

Originally Posted by Harry_S

As Tony Soprano says when he visits Italy and his hometown mafia has a female as the head “A woman Boss!??? Not in my day” lol seriously though times have changed and I welcome the new CEO. What worries me more is talk of a potential sale and AP losing its independance, this would indeed be a fatal mistake for the brand. I echo what was said earlier that Vacheron really went downhill since being part of Richemont as all they care about is the total sales per quarter cycle which is evidenced by you can buy most of their watches at mrporter.com bar the ultra complications, Overseas and novelties like the 222.
Their watchmaking is still intact and exemplary but they have devalued/continue to demote their status by chasing bottom line sales.

In fairness, their watchmaking not only still is intact though, but it’s intact especially „as opposed“ to some of the watchmaking at AP. In the lower tiers, AP has long relied on, if not even been a pioneer of CNC finishing, what concerns me is that this translates to increasingly complicated watches in higher and higher price regions.

[Nav01L]

Originally Posted by In-N-Out

If a deal with LVMH is in consideration, I would imagine LVMH would want a hand in selecting the CEO. Unless LVMH likes Resta’s profile, I don’t think it’s likely AP appoints a new CEO only to have her work on a transition. Also, the fact that Francois is staying on until end of the year suggests he really wants a smooth transition for her. He wouldn’t have done that if a merger is in the works….meaning he wouldn’t care too much about transitioning her since the dynamic, culture, challenges ahead would be drastically different anyway.

Makes a lot of sense

[LUDA]

Originally Posted by ts3

Jean is running the LV watch department...

I looked at their pictures yesterday and I was sure it was the same guy in both positions, because not long ago I was watching some Jean (I guess ) interviews.

My bad.

[GB-man]

Wei koh has a somewhat logical take that the aim is to overtake Cartier on the totem pole sales wise by growing their women’s line of business. There’s a short article on revolution.

[Nav01L]

Originally Posted by GB-man

Wei koh has a somewhat logical take that the aim is to overtake Cartier on the totem pole sales wise by growing their women’s line of business. There’s a short article on revolution.

If they really want to grow in volume, that sure is the segment to go for.

[GB-man]

Originally Posted by Nav01L

If they really want to grow in volume, that sure is the segment to go for.

Correct he references FHB stating they want to make their women’s line the equivalent of a birkin desirability wise and that they can grow the business without overproducing the men’s RO and crashing the value.

[VogelPhoenix]

I have visited a couple of boutiques in the last days, and everybody swears that the family is not planning to sell, even quoting first-hand from Olivier Audemars from a few weeks ago. They also understand that the vast majority of their good customers would find a sale very off-putting. But people do the weirdest things for a few billion CHF.

[malba2366]

Originally Posted by bwdellorf76

Yeah, with this new hire and with board being chaired by Bogliolo (former Tiffany Boss that was sold to LVMH), it appears to me that the company is being cleaned up for a sale. LVMH really needs a high-end watch brand and AP fits the mold. Richemont has Vacheron. LVMH needs AP as the holy trinity brands consolidate. Keep an eye out and see if AP starts to be the only brand with the Tiffany & Co stamp!! I am predicting that this will come once the current deal with Patek expires. Patek also went all out with the "last ever" 5711 with the Tiffany dial. Big and potentially last splash with Tiffany collaboration.

If the family wants to sell, they will not find a better time in the next generation to do so. The sale to LVMH is very plausible, LVMH would probably prefer Patek, but Thierry Stern has made it pretty clear Patek is not for sale. A purchase of Richemont by LVMH would probably be blocked by regulatory agencies, so the only path to a Trinity watch brand for LVMH would be AP.

[sechsgang]

If LVMH bought AP and you had an in with AP already (meaning you actually get pieces you ask for), would you REALLY give up any new offerings just because of that? REALLY? Meanwhile, if it hypothetically were to happen, Jean would be absolutely INCREDIBLE here. I got to sit down with him and hear him talk about innovations in watchmaking and some of the new pieces that have been done by LV and hearing his passion and knowledge about watchmaking (in general)... leads me to think he would be a GEM for a company like AP. Dont hate on the big guys in the lux world just because they are big...but certainly do blame them if they actually wreck a brand after time, thats beyond fair. I certainly dont think that would happen in that case.

[VogelPhoenix]

Originally Posted by sechsgang

If LVMH bought AP and you had an in with AP already (meaning you actually get pieces you ask for), would you REALLY give up any new offerings just because of that? REALLY?....Dont hate on the big guys in the lux world just because they are big...but certainly do blame them if they actually wreck a brand after time, thats beyond fair. I certainly dont think that would happen in that case.

Well, I think it's entirely fair to look at Panerai, VC and Lange, and hate on Richemont.

If nothing changed after a sale, it's probably true that, after some grumbling, many would continue as customers. But that's a very big if, IMO.