PARIS (Reuters) – LVMH, the world’s largest luxury group, has acquired Swiss-based specialist watchmaker L’Epee 1839, expanding its expertise in making high-end watches, the company said on Tuesday.
WHY IT’S IMPORTANT
The acquisition comes as luxury groups look to serve shoppers at the higher end of the market as rising costs of living dampen demand for luxury goods.
LVMH’s watch division is led by Frederic Arnault, one of five children of LVMH Chairman and CEO Bernard Arnault, who was promoted to the position in January.
IMPORTANT QUOTE
“L’Epée 1839 is a brand of mechanical works of art with an unparalleled and unique expertise… with the ability to develop and design objects, and in particular the unique ability to interpret horological intricacies in three dimensions,” said Frederic Arnault .
CONTEXT
Along with smaller rivals, LVMH has seen a sales slowdown in recent quarters as less wealthy luxury buyers tighten their wallets amid rising prices.
The financial terms of the acquisition have not been provided.
LVMH announced last week the purchase of French bistro Chez l’Ami Louis, increasing its focus on so-called experiential luxury.
