Economic Audit: Jaeger-LeCoultre

Target: Jaeger-LeCoultre (Swiss haute-horlogerie maison; brand of Richemont) Domain: Economic (Economic) Date: June 2026 Scope: Jaeger-LeCoultre’s own economic conduct re Israel (market presence, retailers, sourcing). Richemont ownership and sibling maisons are documented at parent/sibling level.

Supply Chain & Sourcing Relationships

Jaeger-LeCoultre operates as a vertically integrated manufacture headquartered in Le Sentier, Vallée de Joux, Switzerland, concentrating the full production cycle across 82 workshops under one roof.¹ The Maison manufactures movements in-house, and all core watchmaking - from movement design and component fabrication through decoration and final assembly - occurs at the Le Sentier facility.² JLC products carry the “Swiss Made” label, which under Swiss law (as amended 2017) requires that at least 60% of manufacturing costs originate in Switzerland and that the movement is assembled and inspected in Switzerland.³

No public evidence identified that Jaeger-LeCoultre sources movements, components, sub-assemblies, precious stones, metals, or any other inputs from Israeli suppliers or Israeli-registered entities. The brand’s public sustainability and sourcing disclosures reference precious-metal and gemstone supply chains centred on Swiss-based relationships, with no mention of Israel as a sourcing geography.⁴

Product Origin, Labeling & Regulatory Compliance

All Jaeger-LeCoultre timepieces sold through authorised partners in Israel are manufactured in Le Sentier, Switzerland and bear “Swiss Made” designation on the dial.¹² No JLC products are manufactured or assembled in Israel. Watches imported into Israel for commercial retail are subject to standard Israeli import duty (HS Chapter 91) plus 17% VAT; the applicable customs duty rate for watches is approximately 11.5% on CIF value.⁵ These costs are borne by the local authorised agent (Padani Jewellers Ltd) as importer of record.

No public evidence identified of any product-labeling non-compliance, regulatory sanction, or customs irregularity involving JLC products in the Israeli market.

Investment, Capital & Financial Exposure

Manufacture Jaeger-LeCoultre SA is a wholly owned subsidiary of Compagnie Financière Richemont SA, consolidated fully into the Richemont group balance sheet.⁶ Richemont completed its 100% acquisition of Jaeger-LeCoultre in 2000, purchasing the 60% interest held by Les Manufactures Horlogères SA for CHF 2,800 million, and simultaneously acquiring the remaining 40% from the Audemars Piguet group for CHF 280 million, for a combined CHF 3,080 million on a debt-free basis.⁷ All intragroup financial flows (dividends, royalties, transfer pricing) occur between Swiss-registered entities.

JLC does not maintain a registered office, manufacturing facility, joint venture, or disclosed investment in Israel. Distribution into Israel is conducted through an independent authorised agent (Padani Jewellers Ltd) operating under a commercial dealership arrangement. No public evidence identified of direct JLC capital investment, equity stake, or financial exposure specific to Israel beyond commercial watch supply.

Out-of-scope context: Richemont’s group-level Israel market operations and parent-company investment posture are matters of Richemont group policy, not JLC brand conduct, and are therefore outside this audit’s scope.

Operational Presence & Market Activity

Jaeger-LeCoultre’s official website maintains a dedicated Israel boutique-finder page, listing Israeli points of sale in the “Middle East” region.⁸ All Israeli points of sale are operated under the Padani brand; JLC does not operate any standalone mono-brand JLC boutique of its own in Israel.

Authorised Israeli retail points confirmed on JLC’s official website include Padani Jewellers Ltd and Padani–Hangar, Padani–Hayarkon and Padani–Ramat Aviv in the Tel Aviv area, and Padani–Jerusalem.⁸⁹ JLC’s website designates these as “Official Jaeger-LeCoultre Partner” stores, not standalone JLC boutiques.⁹

Padani Jewellers Ltd is a family-owned Israeli luxury jewellery and watch retail group founded in Tel Aviv in 1950.¹⁰ Since 1972, Padani has operated as the exclusive Israeli authorised agent for Jaeger-LeCoultre alongside other luxury maisons, including Patek Philippe, Cartier, Piaget, Breitling, Panerai, A. Lange & Söhne, Bulgari, and Chanel.¹⁰¹¹ The company operates approximately eight to nine galleries across Israel.¹²

An independent secondary-market dealer, Gothelf A. Watches (Tel Aviv), lists Jaeger-LeCoultre timepieces; however, the dealer’s own disclaimer states it is not an affiliated or authorised representative of any watch manufacturer, indicating it operates in the pre-owned/resale market only and is not an authorised JLC partner.¹³

JLC’s annual global revenue was estimated at approximately USD 594 million for 2025.¹⁴ No Israel-specific revenue, unit-sales, or market-share data has been published by JLC or Richemont.

Corporate Structure & Foundational Ties

Manufacture Jaeger-LeCoultre SA is a Swiss société anonyme, registered in Le Sentier, Commune du Chenit, Canton Vaud.¹⁵ The Maison is wholly owned by Compagnie Financière Richemont SA, incorporated in Zug, Switzerland, and listed on the SIX Swiss Exchange (ticker: CFR).⁶ Richemont reports JLC’s results within the “Specialist Watchmakers” segment; no standalone public accounts for Manufacture Jaeger-LeCoultre SA are publicly available.

Out-of-scope context (Richemont corporate): Richemont’s controlling shareholder structure, including the role of chairman and founding family, is a matter of Richemont group governance and is outside this JLC-brand audit.

JLC has no historical founding connection to Israel. The Maison was established in 1833 by Antoine LeCoultre in the Vallée de Joux and has been continuously headquartered in Le Sentier.¹ No partnership, joint venture, licencing agreement, or foundational tie between JLC and any Israeli state entity or Israeli private equity has been identified in any public source.

Profit Repatriation & Economic Contribution

Sales of Jaeger-LeCoultre watches in Israel generate revenue for Padani Jewellers Ltd (the authorised agent, an Israeli-registered private company) through the retail margin on watches purchased from JLC. The wholesale price paid by Padani to Manufacture Jaeger-LeCoultre SA flows to Switzerland. Under the standard authorised-dealership model for Swiss luxury watch brands, the manufacturer (JLC/Richemont) retains the ex-works margin; the Israeli retailer (Padani) retains the local retail margin. No royalty payments from Israeli entities to JLC are identified in public sources; the structure does not involve Padani paying a brand-licence fee - rather, Padani purchases finished watches at wholesale.

Economic contribution to Israel from JLC’s market activity is indirect: Padani and its staff, and the Israeli state through VAT and import-duty receipts on JLC watches, are the primary domestic economic beneficiaries. All manufacturing value and the bulk of the gross margin on JLC products are created in Switzerland and repatriated to the Swiss parent.

No public evidence identified of JLC making philanthropic donations, cultural sponsorships, or charitable contributions to Israeli organisations or Israeli-based institutions.

End Notes