Editor, Vogue Business
“Coronavirus hit the luxury industry hard, with stock market valuations of luxury groups shedding a third of their value — or more — since the middle of January,” says Pierre Mallevays, founder and managing partner at financial advisory firm Savigny Partners. “Markets have since recovered somewhat, but we are still down some 20 to 25 per cent for the stronger groups and more for others.”
Giants are best positioned to ride out a storm that could destroy the valuation of weaker companies, leaving them ripe for takeover by the survivors. The luxury industry has been consolidating for some time, giving conglomerates with a wide portfolio of brands an edge when it comes to supply chain, real estate, e-commerce, marketing and advertising spend. LVMH and Kering have swallowed up many competitors in recent years and they might be well positioned to accelerate acquisitions given market conditions.
Click here to read Vogue Business’ full article Luxury M&A activity could pick up post-crisis.