Patek Philippe Is Not for Sale, Says Owner Thierry Stern

Patek Philippe, one of the biggest names in the Swiss watch industry, is not for sale, owner and president Thierry Stern said on Wednesday, telling journalists he plans to hand the multibillion-dollar business to his two sons — without specifying when.

“The target is to stay independent,” said the 56-year-old Swiss executive, whose family has owned the company since 1932.

The executive was speaking to journalists at a preview of the company’s Milan exhibit “Watch Art Grand Exhibition,” with his 24-year-old elder son Adrien Stern present. Stern has in the past dismissed talk of a sale but rarely speaks publicly about succession plans.

Succession has been a key topic among some of the biggest European luxury houses, with watches and jewellery group Richemont earlier this month promoting Anton Rupert, 39, the son of chairman Johann Rupert. At LVMH, meanwhile, the five children of chairman and CEO Bernard Arnault have been moving up the management ranks of the luxury group, though Bernard Arnault, 77, has shown no sign of stepping down.

“Being independent allows me to choose my own destiny and my own strategy. I have nobody to tell me what to do. Shareholders will always look for the money first, but by having 100 percent of the shares, I can choose what to do,” said Stern.

The family-owned Geneva watchmaker has been the subject of talk of interest from luxury groups, with a photo of Bernard Arnault and his son Frédéric Arnault dining with Stern circulating widely last year.

Patek, one of a handful of Swiss watchmakers estimated to be outperforming a wider slump in the market for timepieces, is estimated to be worth more than $10 billion. Stern on Wednesday also said he owns the company outright, following his father’s death in June, at age 88.

While Patek Philippe does not publish financial results, Morgan Stanley and LuxeConsult estimate the brand has grown during the luxury industry’s recent downturn, with annual revenues climbing from 1.8 billion Swiss francs ($2.2 billion) in 2022 to 2.5 billion Swiss francs last year. Stern said his company will produce 75,000 watches this year.

Stern did not say when he would hand over the reins to his sons. “We do not have a timetable,” he said. “My dad stayed on ‘til he was around 75, and that’s too late for me. I would like to stop earlier. But I will always be there.”

Despite his pledge not to sell the company, Stern did not rule out the possibility his sons might strike a partnership one day. “I cannot predict the future,” he said. “In 20 years from now, maybe we will need to have a joint venture because there is new technology a group suddenly found.”

Stern said he has invested over half a billion Swiss francs in a new building for the company — without support from financial institutions.

“This was my own cash — if the business goes down, I have no group to support me. This is the danger,” he said.

At the exhibition in Milan, which opens to the public on Friday, Patek Philippe will introduce more than 30 new watches and clocks inspired by Milanese and Italian art and culture, as well as a new collection for women called Gondolo Ladies First, a diamond-encrusted, quartz model, running from $37,510 to $68,768.

The watch exhibit is Patek Philippe’s first exhibit in three years, and its biggest. Previous editions have been held in cities including Dubai, London, New York and Tokyo, since 2012. It features more than 500 watches and clocks — many from the brand’s Geneva museum — and is held in the city’s recently renovated CityOval building, formerly the Palazzo delle Scintille.

The brand’s exhibit comes as watchmakers seek ways to connect with the wider public, even those who might not be able to afford to buy a luxury timepiece — to boost visibility and spark interest that could lead to a future purchase.

“Most of the visitors will have no clue about Patek Philippe,” said Stern, adding that the company had received 45,000 pre-registrations for the exhibit. “That’s where we are going to give them an education. The purpose is not to sell, it’s just to say who we are.”

In recent years, the independent watchmaking scene has exploded and the market is now flush with low-volume watchmakers producing high-end pieces in Patek’s price category. Stern said he is not worried this will impact his business. “They are not a threat,” he said. “We have problems allocating our watches.”

He said some newcomers were trying to do too much, too soon. “I try to explain to them that it took us 100 years to have the legitimacy to sell high complication pieces in quantity,” he said. “I don’t think it’s wise. Do something simple, then you can go higher. The faster you go, the faster you come down.”

Stern also said he was unsure whether to expand into other product categories. “The strategy is still to focus on watches, but jewellery, why not?” he said. “We are making a little bit of jewellery and I’m not against it. You can make a lot of money, but is it good for the brand? I’m not so sure.”