Private equity owners have slashed the valuation of Swiss watchmaker Breitling following disappointing performance since the luxury brand's ownership change. The valuation reduction comes after CVC Capital Partners sold its majority stake to Partners Group in 2023 for an undisclosed sum.

Breitling's struggles reflect broader challenges in the luxury watch sector, where demand has softened amid economic uncertainty and shifting consumer preferences. The company, known for its aviation-inspired timepieces and celebrity endorsements, had been viewed as a turnaround candidate when Partners Group acquired it. However, the investment firm has been forced to reassess its position as sales growth has stalled.

The valuation cut underscores the risks facing private equity firms in the luxury goods sector, where brand equity can be volatile and dependent on discretionary spending. For Partners Group, the markdown represents a setback in its strategy to build a portfolio of premium lifestyle brands. The development also raises questions about the broader health of the Swiss watch industry as it navigates a challenging market environment.