LVMH Moët Hennessy Louis Vuitton is reportedly in talks to acquire Michael Kors.
According to an article on The Fashion Law, LVMH, parent company of Louis Vuitton, Hermes, and more, is in talks to buy Michael Kors. Société Générale SA, a French multinational banking and financial services company, is said to be advising LVMH on the deal.
Rumors of the deal come shortly after Michael Kors released declining sales and profits for Q2. The New York brand had sales decline by 4% to $1.09 billion and net income decline by 17% to just under $161 million, according to an article on Investopedia. Though sales declined, the company made 95 cents per share, beating Wall Street estimates of 88 cents per share.
Also, there have rumors of a Michael Kors acquisition before. Last month, Spanish website InterEconomia.com alleged that Michael Kors was considering a $10 billion buyout offer. The offer would have valued the brand at around $55.50 per share. Michael Kors was trading at around $47.50 at the time and the rumored deal would have meant a potential premium of about 17%. Regardless, InterEconomia never cited sources or said who the offering party was.
If LVMH were to acquire Michael Kors, it wouldn’t be the first time the company held a stake in Michael Kors. The French luxury company acquired a one third stake in Michael Kors in 1999 while Kors himself served as creative director of LVMH owned Céline. LVMH sold off its entire stake about 4 years later.
No details of the deal, including pricing or when the purchase would be made have been reported. LVMH and has declined to comment on the report.
So, what do you think? Will LVMH acquire Michael Kors? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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