Nov 12 (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)