Has the buying spree started again with LVMH, PPR, and Richemont?

Discussion in 'Designers and Collections' started by mikeijames, Oct 24, 2010.

  1. mikeijames

    mikeijames no tom ford, no thanks.

    Joined:
    Nov 27, 2003
    Messages:
    5,880
    Likes Received:
    1
    for those of us who have followed these things for some years, we remember the exciting times ten years ago when the lvmh and ppr (née the gucci group) and richemont (and the list goes on to include everyone from prada to hermes) defined much of the luxury landscape by scooping up fashion houses. well, it seems that those times of acquisitions may have started up again. first, we have the rather surprising news that lvmh owns nearly a 15% stake in hermes and rumors swirling they may acquire rodarte. second, we have PPR selling off some of its retail operations to free up cash for acquiring some brands to bolster their "sporting" division. finally, you have richemont (owners of cartier, chloe, and so many others) making a great buy with a huge investment in net-a-porter.com.

    so WHO ELSE is ripe for the picking? what is the next storied european house set for revitalization? who will become the next household name like stella mccartney or marc jacobs? what fashion-y site might become the next nowness.com or net-a-porter.com?

    (source: marketwatch.com)

    (source: nymag.com)

    (source: businessweek.com)
     
    #1 mikeijames, Oct 24, 2010
    Last edited by moderator versaceschoolboi: Oct 24, 2010
  2. Thefrenchy

    Thefrenchy Active Member

    Joined:
    Nov 13, 2006
    Messages:
    11,600
    Likes Received:
    4
    At first I wasn't too pleased when I heard about LVMH controling a part of Hermès but I've to say that their comment made me feel a bit better.
     
  3. Street_a_Licious

    Street_a_Licious Active Member

    Joined:
    Oct 21, 2003
    Messages:
    10,947
    Likes Received:
    13
    surprised that LVMH owns so much of Hermes, but as long as it doesn't award them a seat on the board, we have nothing to worry about.

    and the investment of Richemont to net-a-porter is also the reason why there is a men's site in the pipelines.
     
  4. mikeijames

    mikeijames no tom ford, no thanks.

    Joined:
    Nov 27, 2003
    Messages:
    5,880
    Likes Received:
    1
    lvmh raises the stakes....:ninja:

    (source: nymag.com)
     
  5. Thefrenchy

    Thefrenchy Active Member

    Joined:
    Nov 13, 2006
    Messages:
    11,600
    Likes Received:
    4
    An interesting article on how LVMH acquired 17.5% shareholding in Hermès.

    - 00oo00.BLOGSPOT.COM
     
  6. Street_a_Licious

    Street_a_Licious Active Member

    Joined:
    Oct 21, 2003
    Messages:
    10,947
    Likes Received:
    13
    yeah, Joe's blog entry is very interesting...

    that means LVMH owns more than half of what is publicly traded. scary.

    i don't HATE LVMH, but i don't fully trust them either. there were only reports about how the quality of some of their houses' products declined since LVMH took charge...
     
  7. Mutterlein

    Mutterlein Well-Known Member

    Joined:
    Mar 14, 2004
    Messages:
    3,759
    Likes Received:
    286
    Well, I think companies are thinking about growth again and you can only have that if you build a new brand or buy one. Though the Hermes situation looks like it's been a very planned aqquistion. Arnault has wanted that saddle maker for a while and he'll take his time getting it.

    I think we'll see a few other designers go big and sell their house. But for some reason, I feel like the talent pool is so much smaller than it was 10 years ago. There are no McQueens, Ghesquires, or Theyskens roaming about.
     
  8. mikeijames

    mikeijames no tom ford, no thanks.

    Joined:
    Nov 27, 2003
    Messages:
    5,880
    Likes Received:
    1
    but theyskens was floating about. he got snatched up by andrew rosen's theory. i suspect a lot of acquisitons are about to happen if they're considering something as major as selling off the entire fine wines and spirits divison!

    ditto ppr selling off their retail interests. one wonders if hermes would've kept gaultier under lvmh stewardship. and doesn't hermes own gaultier? so it's like a two-fer.

    also, all of this is quite interesting when one considers the whispers about prada going public....could they get snatched up by one of these conglomerates?
     
    #8 mikeijames, Oct 30, 2010
    Last edited by moderator versaceschoolboi: Oct 30, 2010
  9. Street_a_Licious

    Street_a_Licious Active Member

    Joined:
    Oct 21, 2003
    Messages:
    10,947
    Likes Received:
    13
    and to think Prada used to be the one buying, 10 years ago...

    but LVMH selling off their booze division would leave them with only LV.

    and PPR without Redcats would be only PP. since La Redoute is part of Redcats...

    big changes ahead of us?
     
  10. mikeijames

    mikeijames no tom ford, no thanks.

    Joined:
    Nov 27, 2003
    Messages:
    5,880
    Likes Received:
    1
    very true, but i think they could adjust their respective letterheads to accomodate Marc Jacobs and Hermes, in the first case, and PRada, in the second case.
     
  11. Street_a_Licious

    Street_a_Licious Active Member

    Joined:
    Oct 21, 2003
    Messages:
    10,947
    Likes Received:
    13
    they don't own enough H yet and MJ isn't huge enough to warrant such attention. :lol:

    and if PP would acquire Prada, they'd be PPPR. or PPP. or Px3. hell i know.

    the thing with LVMH is that it's 3 old french companies with lots of tradition coming together in their fight to increase profit margins. if they kick out 2 of them, they'd need another 2 french companies with tradition to replace them.

    also, financially people are supposed to diversify their portfolio, not something LVMH would be doing...
     
  12. Thefrenchy

    Thefrenchy Active Member

    Joined:
    Nov 13, 2006
    Messages:
    11,600
    Likes Received:
    4
    This is just in: the Hermès family asked Bernard Arnault to (i don't really now what's the correct word for that but) give up the parts he acquired in Hermès. Bertrand Puech even said "if you want to be friendly Mr Arnault, please step down". I wish I could translate the whole article which is very interesting but it's 8.30AM and I'm off to Law school :lol:

    Here's the link in case you can translate on your own: http://www.lexpansion.com/economie/hermes-demande-a-lvmh-de-se-retirer-de-son-capital_241859.html
     
  13. mikeijames

    mikeijames no tom ford, no thanks.

    Joined:
    Nov 27, 2003
    Messages:
    5,880
    Likes Received:
    1
    this blurb from reuters.com makes it more clear:

    if mr. arnault wanted to be friendly, he wouldn't have acquired such a stake so clandestinely in the first place. the hermes family should count themselves lucky that they're actually doing so well so that the family members don't feel the need to cash in their shares in the same way some other family-owned firms must.

    the versace, prada, and missoni families better take note! theaustralian.com reports that a family quarrel presented this opening to lvmh to POUNCE.

     
  14. ultramarine

    ultramarine chaos reigns

    Joined:
    Jan 7, 2003
    Messages:
    6,404
    Likes Received:
    1
    Its funny how even outside the fashion world, and by that I mean bussiness and stock .. ppl go crazy for Hermes ... I do think he will eventually get it, though if I was a heir to the Hermes legacy Id hold to it and fight it til the end ...

    The biggest question ... whats with the "trying to keep Hermes in french hands?" who is this mystery outside bidder .. if there is one ... does anyone know more about it?
     
  15. abstraccion

    abstraccion Member

    Joined:
    Jan 4, 2009
    Messages:
    912
    Likes Received:
    8
    news.yahoo.com
     
  16. eternitygoddess

    eternitygoddess Active Member

    Joined:
    Jun 30, 2004
    Messages:
    7,913
    Likes Received:
    15
    So is Hermes looking at a potential hostile takeover by Arnault/LVMH?

    Yikes. This will be interesting.
     
  17. mikeijames

    mikeijames no tom ford, no thanks.

    Joined:
    Nov 27, 2003
    Messages:
    5,880
    Likes Received:
    1
    this reminds me SO MUCH -- and i mean, SO MUCH -- of when lvmh tried to take gucci. lest we all forget, the gucci group got born out of a struggle to keep gucci out of lvmh hands. back then, they used prada to do some of their dirty work, if i recall correctly.
     
  18. TianSoFine

    TianSoFine Active Member

    Joined:
    Jan 5, 2010
    Messages:
    2,386
    Likes Received:
    1
    Really? Can someone elaborate on this?
     
  19. mikeijames

    mikeijames no tom ford, no thanks.

    Joined:
    Nov 27, 2003
    Messages:
    5,880
    Likes Received:
    1
    here's an article from the independent.co.uk

     
  20. TianSoFine

    TianSoFine Active Member

    Joined:
    Jan 5, 2010
    Messages:
    2,386
    Likes Received:
    1
    ^Thank you for that. It's interesting for me because I hadn't been following fashion at that time.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice
monitoring_string = "058526dd2635cb6818386bfd373b82a4"