LVMH takes 14.2 % stake in Hermès
Saturday, October 23: LVMH, the world's largest maker of Luxury goods has announced that it will purchase shares equivalent to a 14.2% stake in Hermès. After conversion of derivatives, LVMH will hold a total of 17.1% of Hermès. It is not clear exactly how LVMH procured such a large stock holding in Hermès, but there is speculation that it could have been purchased directly from an Hermès family member or simply on the open market.
The announcement from LVMH:
“The objective of LVMH is to be a long-term shareholder of Hermès and to contribute to the preservation of the family and French attributes which are at the heart of the global success of this iconic brand." “LVMH fully supports the strategy implemented by the founding family and the management team.”
source: reuters.com
Though this "hands off" statement is quite clear, I am certain that over time LVMH will exert influence over the continuing expansion of the Hermès brand. What does that mean for the future of Hermès? I fear that this true Luxury brand will join the mass Luxury fray. Does the Hermès client care? I think so.
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