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.
Tag Heuer became the official F1 timekeeper and first title sponsor for the Monaco race. The brand has a long connection with the city-state, having designed a watch collection sharing the “Monaco” name in 1969. It also has a whole line of F1-themed watches that can cost as much as £4,750.
Its timekeeping return, having last been the official timekeeper in 2003, has put the LVMH-owned watch label on shoppers’ radars.
“Since the beginning of 2025, traffic is up double digits in the stores,” Tag Heuer’s CEO Antoine Pin told Vogue Business. “We adjusted production slightly upward on the car-related models, like the Carrera and the Monaco [to meet demand]. These models are pulling the business forward, which is also why I think the F1 works.”
F1 visibility could reap benefits over time, too. Although its events have attracted A-listers all over the world, F1 races have appealed to a younger and wider demographic, boosting their viewership and interest. Netflix’s Drive to Survive show also helped make the sport feel more accessible by offering a glimpse of what goes on behind the scenes.
This bodes well for Tag Heuer, which has been growing in traction. It’ll be prominent at F1 races (some, like Monaco, more than others), which last the entire year and will be another way for the company to flaunt its historic ties with F1.
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.
LVMH has made inroads into the world of sports in more ways than F1. The company partnered with the Paris Olympics last year, with Chaumet designing the winners’ medals and Louis Vuitton creating the medals trunks encasing them until they were awarded.
Louis Vuitton was the title partner of America’s Cup in Barcelona, a collaboration with the sailing championship that dates back to 1983.
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.
The intersection of luxury and sports allows luxury labels to influence different groups of buyers through athletes and events. If successful, they could draw larger audiences, both for the sporting event and the brands.
Representatives at LVMH didn’t immediately return Fortune’s request for comment.
This story was originally featured on Fortune.com
This story originally appeared on Fortune
