Can Bernard Arnault steer LVMH out of crisis?
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Economist
a day ago
- Economist
Can Bernard Arnault steer LVMH out of crisis?
Louis Vuitton's new 17,000-square-foot development in Shanghai is, quite literally, the luxury brand's Chinese flagship. The structure, which serves as a store, restaurant, museum and billboard, is shaped like a giant boat, its hull emblazoned with Louis Vuitton's unmistakable monogram print. To some, it is also a metaphor for Louis Vuitton's parent company, LVMH, which is floundering in China and beyond. Is it a superyacht headed for promising new waters, asks Flavio Cereda-Parin of GAM, an asset manager, or 'Titanic 2.0'?
The Herald Scotland
2 days ago
- The Herald Scotland
TikTok ban: App goes dark if China doesn't agree to US deal
"If that deal gets approved by the Chinese, then that deal will happen. If they don't approve it, then TikTok is going to go dark," Lutnick said. "And those decisions are coming very soon, so let's see what the Chinese do. They've got to approve it. The deal is over to them right now." When asked if the potential agreement is a part of current trade talks with China, Lutnick said it was being discussed, but "not officially." "You can't really go meet somebody and not bring up the topics that are open," Lutnick said during the interview. "It's not officially a part of it, but unofficially, of course, it's going to be discussed. Neither TikTok nor the White House immediately responded for comment when contacted by USA TODAY on July 24. TikTok: Trump signs executive order delaying ban on TikTok - again When could TikTok go dark in the US? The next deadline for TikTok to be sold from ByteDance is Sept. 17. Trump signed an executive order, the third of its kind, to extend the deadline in June. Why could TikTok get banned? TikTok's future in the United States has been up in the air for months. In January, the platform went dark for less than 24 hours under federal legislation signed into law by former President Joe Biden. For years, some government officials have been concerned that TikTok is a national security threat, believing that ByteDance, which is based in Beijing, is sharing U.S. user data with China. TikTok has repeatedly denied these claims. Three times now, Trump has signed executive orders that push back the deadline for when TikTok must be sold, promising that deals with China are on the horizon. The latest was in early July, when Trump told reporters aboard Air Force One that he was hopeful Chinese President Xi would agree to a deal to see the platform to the U.S. Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@
Reuters
2 days ago
- Reuters
LVMH in talks to offload fashion label Marc Jacobs, sources say
July 25 (Reuters) - French luxury goods group LVMH ( opens new tab is in discussions with multiple buyers to offload its fashion label Marc Jacobs, people familiar with the matter told Reuters on Friday. The Bernard Arnault-led company has been holding talks with potential buyers including Reebok-owner Authentic Brands Group (AUTH.N), opens new tab and WHP Global, the sources said, who asked not to be named because the discussions are confidential. Authentic Brands declined to comment on the matter while WHP did not immediately respond. Brookstone's owner Bluestar Alliance is also a suitor for Marc Jacobs, which could be worth around $1 billion, according to the Wall Street Journal, which earlier reported the news. LVMH, Marc Jacobs and Bluestar Alliance did not immediately respond to requests for comments on the WSJ report. In 2024, Bloomberg reported that LVMH was exploring strategic options for the label with advisers after receiving interest from potential buyers, though the company denied the claim at the time. Founded in 1984 by American designer Marc Jacobs, the luxury fashion brand is renowned for its eclectic, bold designs that blend high fashion with street style. In 1997, LVMH tapped Jacobs to lead the Louis Vuitton brand and acquired a stake in the designer's eponymous label. The Journal said that a deal could be finalized soon, provided talks do not fall apart. LVMH has recently been offloading some of its brands to streamline its portfolio. Last year, it sold the Off-White clothing brand, founded in 2012 by the late Virgil Abloh, to New York-based company Bluestar Alliance for an undisclosed value. Another label, Stella McCartney, earlier this year, repurchased the minority stake held by LVMH in the house she founded about five years after the luxury group bought it. McCartney, who famously does not use leather or fur, said it will continue to advise LVMH chief Arnault and the group's executive team on sustainability matters. Dealmaking in the luxury retail sector has drawn attention in Europe. Earlier this year, Prada (1913.F), opens new tab acquired Versace from Capri Holdings (CPRI.N), opens new tab, combining two iconic Italian fashion brands in a $1.4 billion deal. LVMH's second-quarter sales, which include products such as Louis Vuitton handbags, Dior dresses and Moet & Chandon champagne, came in slightly below market expectations. The company's shares rose with analysts pointing to hopes on the horizon as the group said it saw some signs of recovery in the key Chinese market. Deutsche Bank analyst Adam Cochrane said that while the second-quarter results were not "stellar," there were some "glimmers of hope." French luxury brands have been navigating prolonged market challenges, including a downturn and the potential impact of U.S. import tariffs.
