When LVMH inked an estimated $1 billion deal with Formula One late last year, it marked a turning point for the luxury company’s involvement in sports.
F1 is the most elite motorsport, with 24 races worldwide. LVMH’s 10-year collaboration involves three of its brands participating in the events, including Tag Heuer replacing Rolex as the official timekeeper and bespoke Louis Vuitton trophy trunks being gifted to winners.
This past weekend, as teams were gearing up for the Monaco Grand Prix, LVMH chief Bernard Arnault visited the Red Bull Racing paddock with his sons: Frédéric, CEO of Loro Piana responsible for the F1 partnership; Alexandre, the deputy CEO of the wines and spirits division; and Jean, Louis Vuitton’s watch director.
Its timekeeping return, having last been the official timekeeper in 2003, has put the LVMH-owned watch label on shoppers’ radars.
Tag Heuer’s position jumped in the list of top 20 Swiss watch brands by sales from 15th in 2023 to 11th in 2024, according to a report published by Morgan Stanley and LuxeConsult earlier this year.
“We are in a phase where we establish our role as the timekeeper. In the future, we could focus [our message] on the spectacular aspect of Formula One and the emotions it generates, all that contributes to its ongoing appeal,” Pin said.
Last year, the conglomerate also bought a majority stake in the soccer club Paris FC, while Chanel became the official partner for The Boat Race in the U.K. between Oxford and Cambridge universities.
LVMH and other luxury players could use an injection of excitement now, especially as the luxury downturn continues while a global trade war leaves brands grappling with uncertainty.
Representatives at LVMH didn’t immediately return Fortune’s request for comment.
