Time Products, which owns the brand, is talking to a number of agencies about a potential revamp, as part of an assessment of the whole business.
The process is being overseen by the company's managing director, David Merriman, who replaced Julian Pollock in October.
CDD won the above-the-line account, which is worth £1.5 million, from the incumbent, Toybox, in March 2002 without a competitive pitch.
The agency was handed a specific brief to launch the XS range through a poster campaign in the run-up to Christmas 2003.
The range consists of watches with a £50 to £100 price tag, and was the agency's second client after its Omnicom-backed launch the previous year.