Published by Global Banking and Finance Review
Posted on November 12, 2025
By Jerome Terroy
(Reuters) -LVMH's watch division has taken a minority stake in La Joux-Perret, the French group said on Wednesday, deepening cooperation with the high-end Swiss watch movement and component manufacturer.
The deal, whose financial details were not disclosed, is the latest in the luxury watch sector as companies race to secure production capacity despite an industry downturn.
The partnership includes a commercial agreement aimed at enhancing production and innovation for LVMH's watch brands, which include TAG Heuer, Hublot, and Zenith.
La Joux-Perret will remain fully independent and continue serving clients, while Citizen Group retains ownership of its watch brands, they said in a statement.
The Swiss watch industry is struggling to pull out of a prolonged slump, with demand weakened by a property crisis in China and 39% tariffs on its goods exported to the United States, its biggest market. Officials are working on a deal with the United States to lower the tariffs to 15% as soon as this week, a source told Reuters.
While the financial impact of the La Joux-Perret deal is limited, it underscores LVMH’s determination to become a dominant force in high-end watchmaking, said Jean-Philippe Bertschy, an analyst with Vontobel, noting luxury houses Chanel and Hermes have also taken stakes in component makers and watch brands.
"LVMH has made clear its ambition to lead in sustainable, high-precision watch movements, and this investment is another step toward that objective," said Bertschy.
The companies have been collaborating on solar quartz movements for TAG Heuer since 2022 and the development of a movement that powers Tiffany & Co.'s Rope watch.
LVMH's Watches & Jewelry division last month reported 7.41 billion euros ($8.6 billion) in revenue for the first nine months of 2025, an organic increase of 1% compared to the same period last year.
($1 = 0.8575 euros)
(Reporting by Jérôme Terroy and Leo Marchandon in Gdansk, additional reporting by Mimosa Spencer in Paris; Editing by Milla Nissi-Prussak and Emelia Sithole-Matarise)
