Over the last two years, Hermès has risen from discretion to become a much more visible brand in the marketplace. Signs emerged that the brand no longer stood in splendid isolation to the rest of the luxury competitive set, but that it was repositioning itself. Initiatives included as a much bigger media spend, a boldly revamped website, and press-friendly collaborations with other brands.
Its stronger presence in the marketplace increased speculation that the brand was grooming itself for sale, potentially to LVMH, or to Belgian investor, Albert Frëre.
Yesterday, that speculation hit fever pitch.
The current owners deny the rumors.
But the financial story, according to Bloomberg, suggests that investors are watching the stock closely, as a guide to the entire luxury industry.
Hermes International rose to a 12-month high in Paris trading on speculation that investors who sold borrowed stock with the aim of profiting from a luxury downturn may be buying it back.
About 35 percent of Hermes’s freely-traded stock has been borrowed, most likely by short-sellers, according to Data Explorers, a research firm in London. So-called short sellers profit when they borrow shares, sell them and then buy them back later for less. — (Via Bloomberg)
Yesterday was a partial holiday in France, and even though the stock price shot up 6% yesterday, today, the stock seems to be more volatile… falling sharply…
The relationship between luxury brands and pop culture is becoming increasingly powerful. Part of this growing revolution is an artistic movement that commodified the logos of luxury brands to make provocative statements.
Time magazine has just published its list of the 100 most influential people in the world. There are three luxury-related players this year; Karl Lagerfeld, Takashi Murakami and Carine Roitfeld of French Vogue.
McDonalds continues to surprise - and impress - us with its shameless and opportunistic ideas above its station…
Question: What do Vivienne Westwood, Muhammad Ali and molecular gastronomist Heston Blumenthal have in common? Answer: Superbooks!
After the news of the leap in profits for LVMH Louis Vuitton Moet Hennessy, the luxury conglomerate appears to be ready to open its wallet. Most likely bets are that it will buy a tequila or whisky brand for Moet Hennessy, or a new acquisition for the LV side of the corporation.
Real luxury is alive and well, but not living where it used to, says a spirited piece in the NY Daily News…
Luxury products are - by definition - not necessary. They begin where necessity ends. And many luxury brands have increasingly struggled to justify their more conspicuous excesses to a more challenging consumer marketplace of opinion.
The growing enthusiasm for bespoke products is part of a wider commitment to quality in the luxury industry.
Sex And The City had a highly influential role in the relationship between pop culture and luxury brands. It helped boost sales of brands such as Dior and Balenciaga, and turned Manolo Blahnik into a household name.