LVMH Acquired Tiffany & Co. for $15.8 Billion — And Now They're Going After This Iconic BrandLVMH is on a mission to modernize some of the world's most luxurious brands.
ByAmanda Breen•
Luxury giant LVMH is reportedly toying with the idea of aRalph Laurenacquisition, according to news siteAxios, which cited sources familiar with the matter.
Per Axios's sources, brand founder Ralph Lauren, who has headed the company since its 1967 launch and currently serves as chief creative officer and executive chairman, has begun to plan for his succession. The European-headquartered powerhouse and U.S. fashion retailer have reportedly been discussing a potential acquisition for the past couple of years.
LVMH's portfolio includes 75 different brands ranging from wines and spirits to leather goods and cosmetics, among them Louis Vuitton, Dior, Celine and Givenchy. The company alsoacquiredjewelerTiffany & Co.for $15.8 billion in January 2021, and since then, Alexandre Arnault, son of billionaire and LVMH CEOBernard Arnault, has revamped the brand to attract younger buyers;Jay Z and Beyonceare its latest ambassadors.
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LVMH will likely try to put a more modern spin onRalph Lauren's image too. The company has already expanded its digital offerings, even launching a holiday-themed digital clothingcollection on the metaversein December. Additionally, while thecompany's sales struggledduring the pandemic, reopenings and increased socialization (both of which translate to higher demand for "going-out wear") have helped with growth in recent quarters.
According to analysts, such cutting-edge tactics will be essential ifRalph Laurenwants to compete for the modern consumer.Earlier this month, GlobalData Retail managing director Neil Saunders lambasted the brand's "fragmented nature" in a note to clients, calling its holiday department store displays "little short of abysmal."
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Ralph Lauren Corp was down 0.81% as of 10:30 a.m. ET while LVMH was up 0.49%.
