Comments:
This could be a great step in the right direction for the brand
But the biggest problem to me is still the insanity of the pricing. JLC turned away from collectors looking for value for money and turned into yet another overpriced brand.
And here the financing of the brand will be a big determinant of what happens next…
If the leverage is large there’s no chance of more reasonable pricing going forward. Even if not, price adjustments downwards are always tricky to execute in a way not upsetting people who bought at the higher level and now have a significant loss to stomach 🤷🏻♂️
I totally agree
Leverage is an interesting way in M&A but… how many companies died because of a too large not to say fat leverages…
Well, something like that. 🤭
I mean, I see a 36mm limited run Master Control which I like but at a price hard to accept. But I’m smitten. Now, I’ve been to the JlC factory, I’ve seen how they turn tiny screws blue in the fire, and a lady painting works of art on the back of Reversos, and so on. There is a mystique about the place where the factory is situated, the history of the brand and so on. When I visited I coincided with a group from a Ferrari club that had a good dozen beautiful cars parked in front of the factory building. Blah, blah…. You know, all the appeal of a Swiss watch brand. And then to think that there is foreign capital pulling the strings of the company is… disheartening. Of course, I’m assuming the foreign investment scenario; it doesn’t have to be the case.
I hear you 👍🏻
Given the valuation (which I cannot comment on in terms of value) being as low as stated a Swiss investor is at least feasible 🤷🏻♂️ But then Richemont is not a Swiss entity, either, nor was VDO back in the day 😉
A Trojan is an option for me
JLC have a special place. You are talking of mystique, the history… For several years now, it has no longer been the Grande Maison, but rather the house that dreams of being grand (like Patek)...
For enthusiasts like us... it's disappointing... but for a sale... it could attract major luxury groups... even if they are currently up for sale... or perhaps a refocusing... in terms of positioning and consistency... a group like LVMH has more interest in acquiring JLC than in keeping a particular brand whose image (and I mean image) is less luxurious...
And then... an offer from Jérôme—who was, after all, the group CEO—may have been submitted just to drive up the bidding, which would explain his recent return...
But it should also be noted that JLC is Jérôme's favorite brand... he has always said so... so it cannot be ruled out that the deal will be made in his favor with an earn-out...
In principle, we should know soon...
Will this change anything for enthusiasts like us? Not sure...
Despite everything he has done for the brand and Jérôme's return, Amanico has not heard from the manufacturer, is no longer invited to Watches & Wonders, and no longer receives the documents that allowed him to prepare articles on new products in advance...
That says a lot about the brand's loyalty... and its consideration for the enthusiasts who have contributed to its reputation.
Business as usual...
For enthusiasts like us... it's disappointing... but for a sale... it could attract major luxury groups... even if they are currently up for sale... or perhaps a refocusing... in terms of positioning and consistency... a group like LVMH has more interest in acquiring JLC than in keeping a particular brand whose image (and I mean image) is less luxurious...
And then... an offer from Jérôme—who was, after all, the group CEO—may have been submitted just to drive up the bidding, which would explain his recent return...
But it should also be noted that JLC is Jérôme's favorite brand... he has always said so... so it cannot be ruled out that the deal will be made in his favor with an earn-out...
In principle, we should know soon...
Will this change anything for enthusiasts like us? Not sure...
Despite everything he has done for the brand and Jérôme's return, Amanico has not heard from the manufacturer, is no longer invited to Watches & Wonders, and no longer receives the documents that allowed him to prepare articles on new products in advance...
That says a lot about the brand's loyalty... and its consideration for the enthusiasts who have contributed to its reputation.
Business as usual...
All true, what you say…
If the numbers are correct one has to say that the value destruction over the last 25 years has been immense - given that it was purchased for three times the amount 😱🤷🏻♂️
Not sure how I feel about it
I mean we all want JLC to return to the creativity and majesty (watchmaker's watchmaker) that we remember. My only concern is that who are these funding this, what is their agenda, how will they make money (sadly what all business about these days - rant - why can’t companies exist and stabilize into making a good product that people want, not alway about growth and expansion )? Usually in the pursuit of these things prices go up and creativity goes down. Hopefully this is a return to glory and not just a different board room making decisions.
There is a lot of hate for richemont, which I get. However, I do like some of the stuff they have done. Lange is making great watches (albeit expensive), vacheron has had some great ref, IWC has some great stuff (notably the Portuguese and ingenuir releases), JLC with the reverso updates ,montblanc with their institute of haute horology (where Minerva is), etc. Yes prices gone up, but they have everywhere. Yea there are games for some ALS and some VC (overseas?), but not as bad as private brands AP and Rolex.
Well…
Expecting these types of businesses to run differently from the rest is not very practicable 🤷🏻♂️
Not saying Richemont was a poor owner per se but at some point the number of brands made it a challenge to position them so as to work in the market and at the same time not cannibalize the group 🤷🏻♂️
Not saying Richemont was a poor owner per se but at some point the number of brands made it a challenge to position them so as to work in the market and at the same time not cannibalize the group 🤷🏻♂️
Richemont exiting is great news! Hopefully the conglomerate steps back and understands why sentiment is...... and adjust accordingly.
So we all hope 🤞🏻
But not sure that’s a likely scenario. Still, wait and see I guess 👍🏻
It's a plus regardless, mentions/PR in press and confirms to Richemont people love the brand and desire more.
Which also means they realize their ____ ability and, perhaps, it's best to let someone else carry on about it. My wife does very much love the Reverso, and to quote her about the DuoFace, "A girl needs her options". But she's not gotten one just yet.
Does Richemont care?
I guess if the brand underperforms based on whatever internal KPI system they have and they have not been able to fix it, not sure if they have any emotional attachment 🤷🏻♂️
First B&M and now JLC. If they drop another like IWC or Panerai then yeah, Arnault has always wanted Cartier.
I don't think Rupert is looking to sell but that doesn't mean it couldn't happen 🤣
Arnault is where he is through his hostile takeover of LVMH. He went after Gucci and Hermes as well through quiet accumulation of stock. If richemont sheds some watchmaking dead weight leaving them vulnerable to a dowturn in jewelry if for example the price of gold goes through the roof even more than it already has crushing sales and margin maybe Richemont becomes a soft target..... Conspiracy theory of course 😉
The quietly smartest people at LVMH are their M&A team.
The quietly smartest people at LVMH are their M&A team.