By JBizNews Desk
May 11, 2026
The private equity firms behind Swiss luxury watchmaker Breitling have sharply reduced the company’s valuation after years of aggressive expansion collided with weakening luxury demand, rising tariff pressure, and mounting operational costs that are now forcing a broader strategic rethink.
According to a report published by the Financial Times, London-based CVC Capital Partners and Partners Group have written down Breitling’s valuation to roughly half of its peak worth from just several years ago — a dramatic reversal for a brand once viewed as one of the luxury watch industry’s fastest-rising turnaround stories.
People familiar with the matter told the FT that both firms are now conducting a comprehensive strategic review of Breitling’s operations as slowing sales and rising costs pressure profitability.
Breitling, CVC Capital, and Partners Group declined to comment publicly.
The brand’s rapid rise — and subsequent stumble — traces back to 2017, when CVC acquired approximately 80% of Breitling from the Schneider family in a transaction reportedly valued near $870 million.
CVC immediately installed former IWC executive Georges Kern as chief executive officer and launched an ambitious transformation strategy designed to reposition Breitling from a niche aviation-focused watchmaker into a broader global luxury lifestyle brand.
The strategy initially appeared highly successful.
In December 2022, CVC sold a controlling 50.3% stake in Breitling to Partners Group in a transaction valuing the company at approximately $4.5 billion.
CVC retained roughly 23.6%, while Kern is believed to hold approximately 3%. The remaining ownership is spread among private and institutional investors.
Partners Group co-founder Fredy Gantner chairs the board.
Today, however, the valuation picture looks dramatically different.
According to the Financial Times, CVC has now marked down its remaining Breitling stake to roughly half the level at which it last reinvested during 2023.
Partners Group is reportedly carrying the company closer to approximately 70% of its prior valuation — helped partly by entering at lower earlier pricing levels.
The deterioration reflects a broader slowdown sweeping through the global luxury sector.
Demand for high-end watches has weakened significantly over the past two years as elevated inflation, slowing global growth, reduced tourism activity, and tighter consumer spending pressure discretionary luxury purchases worldwide.
For Breitling, those macroeconomic challenges collided with an especially aggressive retail expansion strategy.
Under Kern, the company rapidly increased its global boutique footprint from approximately 56 locations in 2017 to more than 290 stores today.
The stores, designed around Breitling’s “industrial loft-inspired” concept aesthetic, expanded across major luxury retail corridors including New York, London, Geneva, and Paris.
At the same time, Breitling dramatically increased marketing spending to elevate the brand’s global visibility.
The company signed celebrity ambassadors including Brad Pitt, Charlize Theron, Austin Butler, Trevor Lawrence, and soccer star Erling Haaland.
It also secured high-profile commercial partnerships with Aston Martin, the NFL, and Europe’s Six Nations Rugby Championship.
The NFL partnership culminated in Breitling becoming the league’s official timepiece partner in 2025, accompanied by a major promotional launch event in New York’s Meatpacking District.
Breitling also pursued acquisitions as part of a broader luxury platform strategy, purchasing historic Swiss brands Universal Genève in 2023 and Gallet in 2025 while presenting the companies together under a developing “House of Brands” structure.
Yet despite the scale of investment, sales momentum has stalled.
According to estimates from Morgan Stanley and research firm LuxeConsult cited by industry publication WatchPro, Breitling’s retail sales are estimated at roughly 1.1 billion Swiss francs ($1.42 billion) in 2025, down from approximately 1.2 billion Swiss francs ($1.55 billion) in 2023.
The company’s sales have now reportedly declined each year since peaking in 2022.
In the United Kingdom, where public financial filings provide additional visibility, Breitling’s turnover reportedly fell from nearly £90 million in fiscal year 2023 to below £60 million in its latest filing — a drop exceeding 30%.
Credit markets had already begun signaling concern.
Moody’s downgraded Breitling last year, assigning the company a B3 rating, which reflects elevated credit risk and vulnerability to adverse business conditions.
Moody’s cited declining earnings and rising fixed costs tied to Breitling’s boutique expansion strategy.
S&P Global Ratings followed with its own downgrade in July 2025, cutting Breitling to B- from B, while warning that weakening consumer demand and slowing tourism activity were pressuring luxury spending globally.
Analysts at S&P said they expect gradual recovery beginning around 2027 but acknowledged significant uncertainty across the broader luxury-watch sector.
Tariff pressure compounded the situation further.
Swiss luxury goods entering the United States faced tariffs reaching as high as 39% between August and November before Switzerland later negotiated reductions under a bilateral trade agreement.
Current baseline tariffs on Swiss imports now stand near 10%.
The combination of slowing demand, elevated operating costs, tariff uncertainty, and weakening credit conditions has now forced Breitling’s owners into cost reviews and operational restructuring discussions.
According to Private Equity Wire, CVC and Partners Group are evaluating potential cost-cutting measures while still selectively investing in growth initiatives viewed as strategically important long term.
Despite the current downturn, insiders close to Partners Group reportedly still believe Breitling could eventually become a viable IPO candidate between 2027 and 2029 if the company stabilizes operations and the broader luxury market recovers.
The firm’s long-term thesis remains centered around Breitling’s strong chronograph heritage, aviation identity, and expanded global brand recognition.
But before any public offering becomes realistic, Breitling faces a more immediate challenge confronting much of the luxury industry today: proving that years of expansion, celebrity marketing, and premium pricing can still generate sustainable growth in a world where consumers are becoming far more selective about what they are willing to spend on.
— JBizNews Desk
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