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.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia