Stock markets and industry observers shrugged off reports that LVMH Moët Hennessy Louis Vuitton might acquire Burberry or Tiffany in order to bolster its slowing revenue growth.
While LVMH, Burberry and Tiffany all declined comment on the speculation, sources close to LVMH said the French luxury giant is unlikely to buy either of the two companies.
On Friday, shares in Burberry gained as much as 3 percent following a Bloomberg report suggesting LVMH is poised to make an acquisition, with analysts touting Burberry and Tiffany as likely and interesting targets.
LVMH stock closed up 1.5 percent Friday to 132.45 euros, or $174.60 at current exchange, on the Paris Bourse. Shares in Burberry Group plc closed up 1 percent to 13.82 pounds on the London Stock Exchange. Tiffany investors essentially shrugged off the possibility as part of the routine rumor mill — the company’s been the subject of merger talks on and off in the past few years. Shares of Tiffany & Co. inched up nearly 0.2 percent to close at $64.38 in trading Friday on the New York Stock Exchange.
Burberry is 100 percent listed, with Capital Group holding the biggest stake at about 8 percent.
Market rumors about Burberry being in play surface periodically. Berenberg Bank analyst John Guy has repeatedly recommended an LVMH takeover of Burberry, most recently in a report published Feb. 15, arguing it makes sense in terms of addressing a gap in the French group’s portfolio.
To be sure, LVMH has the means to bulk up its stable of more than 60 brands, which span fashion, leather goods, jewelry, watches, retail, beauty products, wines and spirits.
By yearend 2012, LVMH had available cash flow (before financial investments, capital operations and financial operations) of 2.47 billion euros, or $3.18 billion at average exchange, up 297 percent over last year.
The company’s 2012 net debt declined 8.6 percent to 4.26 billion euros, or $5.48 billion.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)