Richemont has signed an agreement to sell Baume & Mercier to Italy’s family-owned Damiani Group in a private transaction expected to close in summer 2026. Financial terms were not disclosed. Richemont will provide operational services for Baume & Mercier for an interim period of at least 12 months after closing, a structure designed to keep ordering, logistics, after-sales service, and retail support steady through the handover. For Damiani, the acquisition adds a Swiss watchmaker with nearly two centuries of heritage and a global footprint in the “accessible luxury” segment—an important category for jewellers because it often sits at the same crossroads as bridal, gold, and gifting.
While ownership changes rarely reshape the retail floor overnight, the deal highlights how major luxury groups are rebalancing their portfolios as the watch market normalises after a tough cycle. It also signals that distribution, after-sales performance, and brand clarity are becoming as critical as product design in winning the next phase of growth.
Why Richemont is moving Baume & Mercier
In recent quarters, Richemont has been signalling improving momentum across parts of its Specialist Watchmakers division, suggesting the broader slump may be easing. Against that backdrop, selling Baume & Mercier reads less like a retreat from watches and more like an intentional simplification: sharpening focus on maisons where Richemont sees the greatest long-term leverage, while placing a more accessibly positioned watch brand with an owner that views wholesale-led growth as a core competency.
Baume & Mercier occupies a very specific role in the global watch ecosystem: it is often a step-up brand for clients buying their first serious Swiss watch, or for jewellery customers adding a watch to their wardrobe alongside bridal, anniversary, or milestone jewellery. In a market where value sensitivity rises quickly when prices climb, that positioning must be supported by consistent availability, strong merchandising, compelling storytelling, and a service experience that removes friction. Those are areas where an owner with deep wholesale and retail distribution expertise can potentially create faster gains than a conglomerate optimising across many maisons.
Why Damiani wants a Swiss watchmaker
Damiani Group is privately held and best known for its Italian jewellery houses and retail reach. It also owns Rocca, a luxury watch and jewellery distributor with a chain of boutiques in Italy. Adding Baume & Mercier extends Damiani’s presence into Swiss watchmaking and allows the group to broaden its offer in the watch segment, while creating more cross-category opportunity between jewellery and watches—a pairing that is increasingly important as consumers compare purchases across adjacent luxury categories.
Damiani’s CEO has positioned the acquisition as a “new start” for both sides, highlighting two core benefits: Damiani gains a Swiss watch brand that can attract a wider customer base, while Baume & Mercier gains support from Damiani’s wholesale position and watch-market experience. Over time, Damiani has signalled it intends to increase Baume & Mercier’s visibility by leveraging its multi-brand distribution network and expanding into select mono-brand boutiques in strategic locations.
The market backdrop: cost pressure and uneven demand
The transaction lands at a moment when watch retail has been pressured by multiple headwinds: shifting consumer demand, especially in parts of Asia; higher input costs; and policy-driven pricing uncertainty in key markets. Even when a brand’s core identity remains stable, these forces can quickly test the limits of an “accessible luxury” price band. When retail prices move upward, consumers become more comparative: they weigh a watch purchase against gold jewellery, bridal upgrades, second-hand options, and even experiences. That pushes brands and retailers to prove value through design, warranty confidence, and after-sales care—elements that are felt most directly at the store level.
For multi-brand jewellers, this matters because the watch case is often a gateway. It can introduce younger clients to higher-ticket purchases, build repeat visits through servicing, and open a long-term relationship that later converts to bridal and fine jewellery. When a watch brand changes owners, retailers watch for signals around distribution discipline, marketing investment, and after-sales execution—because those are the levers that shape sell-through and protect margins.
What Canadian jewellers should watch next
The short-term message is continuity. Closing is expected in summer 2026 and remains subject to certain conditions, while Richemont’s commitment to provide operational services for at least 12 months after closing should support stability through the transition. That structure suggests both parties are prioritising a smooth handover for retailers and clients.
Beyond closing, Canadian jewellers will be watching three practical areas.
1) Distribution strategy. Will Damiani strengthen wholesale programmes—training, retailer tools, merchandising support, co-op marketing—while maintaining disciplined distribution? Or will a push for visibility introduce more complexity in how markets are managed?
2) After-sales performance. Service is where brands earn long-term trust. Any changes in turnaround times, parts availability, warranty handling, or service communications are quickly felt in-store.
3) Price and positioning. If costs stay elevated, how will Baume & Mercier protect its value proposition without drifting out of its core “accessible Swiss luxury” lane?
For Richemont, the transaction underscores focus. For Damiani, it is a bet that owning a Swiss watchmaker can deepen its watch-and-jewellery ecosystem. For Canadian jewellers, it is another reminder that consolidation and portfolio realignment are becoming part of the next watch cycle—and that distribution strength and service consistency will matter as much as product in winning it.
