LVMH Strengthens Watch Division with Swiss Movement Maker Stake

LVMH Moët Hennessy Louis Vuitton is reinforcing its luxury watch segment through a strategic minority investment in Swiss movement manufacturer La Joux-Perret. The move is designed to bolster production capabilities and accelerate innovation for the conglomerate's watch brands, which include TAG Heuer, Hublot, and Zenith. Market reaction in early trading on the Euronext Paris was muted, with LVMH shares declining approximately 0.6%.

This investment formalizes and deepens a pre-existing collaborative relationship between the French luxury powerhouse and the Swiss specialist. La Joux-Perret has already been instrumental in key developments for LVMH, contributing to the creation of a Swiss solar quartz movement for TAG Heuer's Aquaracer and Formula 1 collections, as well as a mechanical movement for Tiffany & Co. While the financial specifics of the stake remain undisclosed, the transaction is characterized as a strategic commercial partnership aimed at securing the supply chain.

The Swiss firm is renowned for its mastery in crafting high-precision mechanical and automatic calibers. In recent years, it has also emerged as a pioneer in solar-powered movements, leveraging technology from its parent company, Japan's Citizen Watch Group. LVMH anticipates this partnership will speed up the pace of innovation across its entire watch portfolio.

A Broader Trend of Vertical Integration

Acquiring a stake in a key supplier is a clear execution of LVMH's vertical integration strategy within the fiercely competitive luxury watch sector. By gaining direct access to a critical component maker, the group fortifies its industrial footprint in Switzerland—the epicenter of global watchmaking, where LVMH already operates 16 production facilities.

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This tactic reflects a wider industry pattern where major luxury players are seeking greater command over their manufacturing processes. The objectives are threefold: to guarantee exceptional quality, to manage supply chains more effectively, and to protect proprietary technologies.

The arrangement is viewed as mutually beneficial. LVMH secures privileged access to specialized components and cutting-edge technology, particularly in the growing field of sustainable watch movements. Conversely, La Joux-Perret gains the stability and long-term development prospects that come with an alliance with an industry titan.

Looking Ahead for LVMH

The watch division represents a core pillar of the LVMH empire. This latest financial commitment underscores the group's long-term dedication to strengthening this key business segment. Investors will be watching for the next major financial update when the company releases its full-year 2025 results in January 2026.