LVMH Reportedly Eyes Ralph Lauren Takeout

Shares of Ralph Lauren gained today on reports that luxury goods giant LVMH has held talks to buy the outfitter.

Ralph Lauren added points intraday, before closing down 0.4% at the close. It’s up 0.58% over the last week, but up 17% over the last month.. so maybe it’s fair to say that the street has been well-acquainted with this newly reported insight.

The outfitter’s founder and namesake, Ralph Lauren, is 82. Legacy and “succession” is on the mind, which is one reason why LVMH’s prestige and status in the fashion biz might be one motivating factor for such a takeout. However, it’s also a stable pickup. LVMH has 10x the revenue of LVMH, which makes it likely to be a strong custodian of the company.

Ralph Lauren would just be the latest acquisition for the luxury fashion brand.  The company acquired Christian Dior for $13.1 billion in 2017 and Tiffany & Co in a $16 billion deal in 2019. 

$LVMH, which is worth over $377 billion in market capitalization, has fallen by -10% YTD. However, the decades-old retailer which owns Louis Vuitton, Sephora, and Hennessy (among others) might have even more subsidaries to count among its exclusive and far-reaching ranks. It was down -1.3% today.

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