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Luxury conglomerate Richemont has agreed to sell Swiss watchmaker Baume & Mercier to Italy’s Damiani Group, marking a notable shift in the structure of the global watch industry and raising questions about whether major groups are entering a new phase of portfolio consolidation.
Expected to close later in the year, the transaction will see the nearly 200-year-old watch brand change hands after more than three decades under Richemont ownership. Financial terms have not been disclosed, though Richemont confirmed it will continue providing operational services for the brand for at least 12 months after the deal closes to ensure a smooth transition.
Founded in 1830, Baume & Mercier occupies what the industry typically refers to as the “accessible luxury” segment of Swiss watchmaking. Known for collections such as the Riviera and Clifton lines, the brand has historically offered Swiss-made timepieces at comparatively attainable price points within Richemont’s broader portfolio.
However, the segment has become increasingly challenging in recent years. As demand for high-end mechanical watches has surged, many luxury groups have shifted focus towards higher-margin prestige models, leaving mid-tier brands in a difficult competitive position. Analysts estimate Baume & Mercier’s sales in recent years at approximately USD 88 million, with reports suggesting the brand has struggled to maintain profitability.
Within Richemont’s portfolio — which includes high-performing maisons such as Cartier, Van Cleef & Arpels and Vacheron Constantin — Baume & Mercier increasingly sat outside the group’s emphasis on top-tier luxury watchmaking. The divestment therefore reflects a broader strategic refocusing on brands capable of operating at the highest end of the market.
For Damiani, the acquisition represents a different opportunity. The Italian luxury group — best known for its jewellery brands including Damiani, Salvini and Bliss — has steadily expanded its presence across hard luxury. Baume & Mercier provides the company with a ready-made entry into Swiss watchmaking, complementing its existing jewellery business and its multi-brand retail network operated through Rocca.
Damiani has indicated plans to increase the watchmaker’s visibility by leveraging its global distribution network, which includes boutiques and retail partners across Europe, Asia and the Middle East. The group also intends to open select mono-brand boutiques in strategic locations as part of the brand’s repositioning.
The sale also reflects broader structural pressures within the watch industry. The mid-priced segment — historically one of Swiss watchmaking’s most commercially significant tiers — has faced mounting challenges from rising production costs, a strong Swiss franc, increasing gold prices and changing consumer demand. This also comes at a time when large groups have increasingly prioritised lower production volumes but significantly higher-priced watches, amplifying the divide between entry-level and high-luxury brands.
Against this backdrop, Richemont’s decision to divest Baume & Mercier may signal a broader period of industry recalibration. Several analysts have suggested that other major groups could eventually reassess underperforming brands within their portfolios, particularly those operating in the accessible luxury space.
For Damiani, however, the challenge now lies in demonstrating that the historic Swiss Maison can be successfully repositioned within a changing market. Whether the brand can regain momentum under new ownership will (partially) depend on how effectively the group leverages its retail network and brand heritage to rebuild relevance with a new generation of watch buyers.
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