|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||89.80 - 91.25|
|52 Week Range||60.05 - 97.55|
|Beta (5Y Monthly)||0.89|
|PE Ratio (TTM)||32.76|
|Forward Dividend & Yield||1.18 (1.29%)|
|Ex-Dividend Date||Jul 02, 2020|
|1y Target Est||N/A|
RICHARD TAITTINGER GALLERGY CEO Richard Frerejean Taittinger (Courtesy of The Wall Street Journal) The art market is on the cusp of a revolution. Rapid democratization, just as in the world of luxury goods, will open up the pool of potential new collectors to include a much younger and geographically diverse demographic. At the same time, […]
Warren Buffett, after giving away a $2.9 billion gift this week, has seen his wealth drop below Google co-founders Larry Page and Sergey Brin as well as former Microsoft CEO Steve Ballmer,
Following a drive to bulk up e-commerce services — spurred along by store closures — the group will focus on artificial intelligence.
The fallout from the coronavirus crisis will weigh on LVMH's earnings for some time yet, though there were some signs of recovery this month, executives at the world's biggest luxury goods group said on Tuesday. Second quarter earnings at the owner of Louis Vuitton and other brands will be hit particularly in Europe and the United States, Chairman Bernard Arnault told a shareholder meeting, conducted online. "We can only hope at this point for a gradual recovery," Arnault told investors, adding that the second half of the year looked better.
The fallout from the coronavirus crisis, which forced retailers to close stores, will weigh on Louis Vuitton owner LVMH's earnings for some time yet, though there are some signs of recovery in June, executives at the group said. The luxury goods group's second quarter earnings will be particularly penalised in Europe and the United States, Chairman Bernard Arnault told a shareholder meeting. Finance chief Jean-Jacques Guiony said the fallout would still be felt in the months to come but that it was not possible to make definite projections.
Seafolly Pty Ltd, an Australian swimsuit maker part-owned by French fashion giant LVMH Moet Hennessy Louis Vuitton SE, appointed administrators on Monday citing a sales downturn from the coronavirus, the latest casualty of the health crisis in the country's retail sector. "Seafolly made the appointment because of the crippling financial impact of the COVID-19 pandemic," said Scott Langdon and Rahul Goyal, of KordaMentha Restructuring, in a statement. Seafolly's move into adminstration points to gaps in various corporate relief packages set up by the Australian government during the shutdown, such as a wage subsidy scheme and a deferral of certain financial reporting obligations to help companies stay afloat.
The United States said it would impose tariffs on a range of European goods. The International Monetary Fund predicted world growth would shrink 4.9% and cut its U.S. forecast by 2 percentage points, now expecting it will shrink 8%.
(Bloomberg Opinion) -- Gucci owner Kering SA has shaken up the relatively staid world of the corporate boardroom by appointing Emma Watson, the British actress, as a non-executive director. But the recruitment of the Harry Potter star isn’t celebrity window dressing: Watson is a champion of sustainable fashion, so her advice to the French luxury behemoth will be valuable.Her every move is followed by the world’s media, and what she does will be associated with Kering from now on. She is a vocal equality campaigner, as was seen this week with her tweets of support for trans people.But Watson’s values seem to gel with those of the company, and they certainly reflect those of the younger consumers with whom Kering is eager to connect. The owner of the Yves Saint Laurent and Bottega Veneta brands has long put sustainability at the heart of its corporate strategy. Each year it produces an environmental profit-and-loss account that calculates the cost of the damage to the planet attributable to the company and its supply chain. For the past decade, green targets have been included in criteria for measuring performance and calculating executive bonuses.Increasingly, many luxury shoppers care deeply about these issues. Younger generations place as much importance on what brands stand for as they do on their products. With people under 45 generating all of the growth in the industry, staying in tune with them is crucial.Indeed, this is all part of a new mood of inclusivity in luxury, whether that’s embracing different cultures, sexuality or body shapes. Having diverse views on corporate boards can help promote this, and prevent some of the mistakes that have engulfed houses in the past, including at Gucci, which withdrew a sweater last year after it was criticized for resembling blackface.Kering already had an impressive number of women on its board, and its latest appointments have further improved its diversity. Joining Watson will be Jean Liu, president of ride-hailing service Didi Chuxing, and Tidjane Thiam, who was the only Black chief executive officer among the biggest European banks when he ran Credit Suisse Group AG.Rival LVMH has also taken steps to better reflect the values of its younger customers. Rather than hiring a fashion designer to create its first new fashion house for 30 years, it brought Rihanna’s Fenty label — which includes makeup and clothing — into its stable. The pop star has put diversity, including race, gender and body shape, at the heart of all her style and beauty endeavors. Her arrival also shows that, in the Instagram age, actresses and singers have the same fashion cred as designers.With Kering and LVMH taking the lead on sustainability and diversity, expect others in the industry to follow suit.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
From Armani to Gucci, top fashion houses are re-designing their calendars to slow down the frantic pace of catwalk shows and new collections, as the coronavirus pandemic forces a rethink of the way the industry works. Luxury labels are scaling back the number of collections they show at fashion weeks across the year in London, Paris, Milan and New York or at other events in exotic locations. Brands are grappling with piles of unsold stock and the prospect of widespread discounts that risk denting their aura of exclusivity as well as profits.
(Bloomberg Opinion) -- There’s a new bling king in town. From selling cut-price tracksuits and trainers at his Sports Direct shops, Mike Ashley is now accumulating a portfolio of holdings in luxury-goods brands.The British billionaire’s Frasers Group Plc said late on Friday it had a acquired an exposure worth as much as 97 million pounds ($122 million) to German fashion house Hugo Boss AG through shares and derivative positions.The interests in Boss, known for its sharp suiting, represents Ashley’s second foray into luxury goods in the past six months. In February, Frasers, which includes the Sports Direct chain, House of Fraser department stores and Flannels luxury boutiques, spent about 20 million pounds acquiring a 12.5% stake in upmarket accessories maker Mulberry Group Plc, best known for its iconic Bayswater bag.The strategy for both investments is the same; securing close commercial relationships with an investment interest. They’re meant to buttress Ashley’s goal of turning House of Fraser into the “Harrods of the high street.” While this has been much maligned, the brash retail mogul may just have his chances if the company can position itself well coming out of the coronavirus lockdown, especially with rival Debenhams Plc significantly weakened.Like Mulberry, Hugo Boss is an important brand for both House of Fraser and Flannels, which also sells Burberry and Balenciaga. The companies have worked together as commercial partners for some time.There may be reasons for striking now.Hugo Boss shares have lost half of their value in the past year, underperforming the Bloomberg Intelligence luxury peer group, and the company faces a management shake-up just as Chief Executive Officer Mark Langer’s sensible turnaround loses steam. Langer, a long-serving executive who took the top job in 2016, will leave on Sept. 30. The company said recently it was in talks with former Tommy Hilfiger Group CEO Daniel Grieder to be his successor.If Grieder is appointed, it’s not clear how he will revive Hugo Boss’s fortunes. One option could be to follow the luxury-industry trend of cutting back on distribution to retailers not considered upmarket enough for one’s brands. If Grieder were to seek to rationalize supply to House of Fraser, then Ashley, as a big holder, would be able to make his views known.Meanwhile, the Marzotto Italian textile-manufacturing family, a long-time shareholder in Hugo Boss, increased its stake from 10% to 15% in February, sparking speculation the company could be taken private. If this were to happen, Ashley would have a seat at the table too.As with his investments in high street retail, Ashley’s dabbling in luxury has been distinctly mixed. I argued in February that he couldn’t lose with the stake in Mulberry. But the British brand has since been hurt by the lockdown, and parted company with its star designer Johnny Coca, who has now joined Louis Vuitton. Shares in Mulberry have fallen 17% since Ashley took his stake.While Ashley’s interest in Boss may be strategic, it is not without risk. Hugo Boss still generates the majority of its sales from clothing, not the best place to be in a pandemic as many consumers essentially skip a fashion season. What’s more, demand for its smart tailoring in business attire may be permanently damaged by a shift to working from home. Its new management and design teams will have to work hard to offset that by accelerating Langer’s push into younger, more casual clothing, and bolstering revenue from accessories, which are proving more resilient.Ashley’s moves usually raise eyebrows, but he often takes the right strategic direction. With his attention now focused on brands that are far from cut price, Burberry Group Plc has several potentially alluring characteristics: It’s in a turnaround, its shares have dipped and it’s a Flannels favorite. The British luxury house could yet fit in Ashley’s shopping bag.But for now, he will be hoping that his timing for striking at Hugo Boss suits him better than Mulberry did.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- A Texas-based private equity firm and a fund backed by luxury retailer LVMH added $850 million to the surge of investment in Jio Platforms Ltd., the telecommunications and digital services business of Reliance Industries Ltd., India’s largest company.TPG Capital agreed to pay 45.5 billion rupees ($600 million) for a 0.93% stake in Jio Platforms, while L Catterton, the $20 billion consumer-focused private equity firm, took a 0.39% stake for 18.9 billion rupees, Reliance said in separate statements dated June 13.The deals add to the list of well-known investment firms joining billionaire Mukesh Ambani’s bid to pay down debt at his Reliance flagship, raising the total invested to about $13.7 billion since April. Ambani has also drawn investors with a plan to shift the conglomerate toward growth in e-commerce, online entertainment and digital payments, away from a dependence on revenue from oil refining and petrochemicals.“I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses,” Ambani said in the statement dated June 13.Ambani’s digital unit, whose equity value is now about $65 billion, has sold more than 22% in stakes to buyers including Facebook Inc., KKR & Co., Silver Lake Partners and General Atlantic. Jio is expected to use its roughly 400 million wireless phone subscribers as the cornerstone of an e-commerce and digital services business in the world’s second-biggest country.The slew of investments have sent Reliance Industries shares soaring more than 80% since late March, and the stock is trading near a record high.Ambani, Asia’s richest man, has also been plowing more of his own fortune into the company. Reliance Industries concluded its $7 billion rights offering earlier this month.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Former LVMH Chairman of North America & 'Aesthetic Intelligence' Author Pauline Brown joins Yahoo Finance’s Heidi Chung to discuss the latest retail outlook amid the coronavirus pandemic.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of LVMH Moet Hennessy Louis Vuitton SE and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Total net sales in the Americas slid 45% in the quarter, to $225 million, on a 45% decline in same-store sales. Adjusting for currency, net sales and comparable sales fell 44%. In the Asian-Pacific region, total net sales were down 44% to $174 million as same-store sales fell 42%, on a constant-currency basis.
U.S. luxury jeweler Tiffany & Co said on Tuesday it had received antitrust clearances from Mexican and Russian authorities to go ahead with its $16.2-billion purchase by French giant LVMH. The company said it amended certain of its debt agreements in order to have sufficient liquidity to handle the coronavirus hit and added that the changes were in compliance with its merger agreement with LVMH. LVMH CEO Bernard Arnault has decided not to renegotiate the agreed price of $135 per share in cash, sources told Reuters on Friday, after the company's board last week discussed the fallout from the coronavirus crisis on the acquisition.
(Bloomberg Opinion) -- There’s a long-running joke among my team’s deals writers and editors that in the corporate world, all roads eventually lead to mergers. Whatever is happening on the outside or on Wall Street — economic downturns, upturns, elections, currency fluctuations, CEO departures, CEO arrivals, good earnings, bad earnings, you name it — the case can somehow always be made, almost comically, that it’s an impetus for more corporate tie-ups. Warren Buffett would say that’s thanks to all the fee-hungry bankers playing to CEOs’ vain propensity for empire-building. Others say it’s the animal spirits at work.Whatever the case, the global pandemic is giving businesses plenty of reasons to get back to dealmaking. Yes, even social distancing may draw some companies closer together. How they do it will just require a bit more ingenuity in a post-handshake, post-Covid-19 world.As drugmakers race to develop vaccines and treatments for the virus, the pharmaceutical industry is an obvious place to expect renewed M&A activity. Already, drug giant AstraZeneca Plc has made a preliminary takeover approach to Gilead Sciences Inc., Bloomberg News reported Sunday, citing people familiar with the matter. That’s a potential $100 billion transaction. Executives from Johnson & Johnson also said in April that one of their top priorities is finding M&A that enhances its pipeline, citing the drugmaker’s financial strength. The company has $18 billion of cash and equivalents, and Ebitda exceeds debt.It was the pharma industry that kicked off the global megamerger wave last time around, in early 2014, as companies including AstraZeneca participated in a game of merger musical chairs. Soon enough, just about every industry had joined the deal frenzy, which lasted until earlier this year. It might have kept going had the virus not arrived.M&A globally is down 50% this year after the coronavirus quite literally brought the economy to a halt. But stay-at-home orders have been lifting across Asia, Europe and the U.S. And now that New York City — the unofficial headquarters of the M&A market — is beginning to reopen, deals that were in the works previously may pick up where they left off. Those are “low-hanging fruit” for bankers to try to get done, said Eric Becker, who manages the AltShares Merger Arbitrage ETF at Water Island Capital, a firm with $2.5 billion under management. “Those were situations where they were still able to hit the golf course and have the handshakes and look at each other face to face.”The M&A handshake may be over, but tech-savvy companies are already embracing the deal-by-video-chat method. Verizon Communications Inc. acquired videoconferencing business BlueJeans Networks for about $400 million in April, and though those talks began last year, the deal had to be finalized over BlueJeans video calls. Intel Corp. also bought Moovit Inc., an Israeli public-transit mapping startup, for $900 million last month. Moovit’s CEO told one publication that the deal came together over Zoom video calls.Not only could more companies use videoconferencing tools to do M&A, other tech-affiliated companies could copy Verizon by acquiring a service like BlueJeans to round out their business software offerings. That’s if working from home is going to be more common even after Covid-19 gets under control. And for deals in which physical assets and property are key, investors have cited the prospect of drones being used to conduct due diligence and avoid unnecessary travel and virus risks. Whether that’s a practical solution remains to be seen. Companies that announced deals just before the virus struck may experience buyer’s remorse. Tiffany & Co.’s acquirer, LVMH Moet Hennessy Louis Vuitton SE, is reportedly looking to pay a lower price than the $16.2 billion it offered in November, but Tiffany, of course, doesn’t want to renegotiate the terms. The spread between Tiffany’s share price and LVMH’s bid is wide at 10%, signaling investor apprehension that the deal will collapse.But then there are deals that make all the more sense because of the crisis. Uber Technologies Inc. is trying to acquire Grubhub Inc. to consolidate the market for food-delivery services as demand surges. Even as restaurants reopen, diners in heavily populated areas may still be reluctant to eat out. Becker also cited an ongoing trend of regional bank acquisitions, as smaller banks require better online capabilities and larger banks seek a deeper community presence.Vulnerable companies may already be bracing for activist shareholder interventions and unsolicited bids. The law firm K&L Gates LLP said that between March and mid-April more than two dozen U.S. public companies adopted so-called poison pills — more than the total number of S&P 500 companies that had these types of takeover protections in place last year. Private equity firms are also likely to be gearing up for buyouts. Such campaigns run the risk of igniting political and public scrutiny in a year marked by soaring unemployment and social activism over inequality. Other opportunistic buyers may soon come out of the woodwork. Amazon.com Inc., which isn’t a frequent borrower, aroused suspicion when it issued $10 billion of debt in recent weeks. Oracle Corp. also raised $20 billion. “When you start seeing some of these deep-pocketed buyers doing these large debt deals, it makes me think there's pent-up demand for M&A,” Becker said. One caveat: Regulators are ostensibly taking a tougher stance against potentially anti-competitive takeovers by tech giants. Even so, companies that see President Donald Trump losing the November election may want to act before less-merger-friendly Democrats take charge.There’s also the question of what Warren Buffett will do with Berkshire Hathaway Inc.’s $137 billion of cash. I suggested last week that Costco Wholesale Corp. should be its next bulk purchase. Wherever the crisis goes from here, all roads still lead to deals. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of luxury jeweler Tiffany & Co. (NYSE: TIF) have jumped today, up 6.7% as of 3:30 p.m. EDT, after luxury conglomerate LVMH Moet Hennessy (OTC: LVMHF) backed off its threat to renegotiate the terms of its deal to acquire Tiffany. Last year, LVMH agreed to purchase Tiffany for $16.2 billion, or $135 per share, in a deal that was -- at the time -- expected to close this month.