LVMH Acquired Tiffany & Co. for $15.8 Billion — And Now They're Going After This Iconic Brand LVMH is on a mission to modernize some of the world's most luxurious brands.
Per Axios's sources, brand founder Ralph Lauren, who has headed the company since its 1967 launch and currently serves as chief creative officer and executive chairman, has begun to plan for his succession. The European-headquartered powerhouse and U.S. fashion retailer have reportedly been discussing a potential acquisition for the past couple of years.
LVMH's portfolio includes 75 different brands ranging from wines and spirits to leather goods and cosmetics, among them Louis Vuitton, Dior, Celine and Givenchy. The company also acquired jeweler Tiffany & Co. for $15.8 billion in January 2021, and since then, Alexandre Arnault, son of billionaire and LVMH CEO Bernard Arnault, has revamped the brand to attract younger buyers; Jay Z and Beyonce are its latest ambassadors.
LVMH will likely try to put a more modern spin on Ralph Lauren's image too. The company has already expanded its digital offerings, even launching a holiday-themed digital clothing collection on the metaverse in December. Additionally, while the company's sales struggled during the pandemic, reopenings and increased socialization (both of which translate to higher demand for "going-out wear") have helped with growth in recent quarters.
According to analysts, such cutting-edge tactics will be essential if Ralph Lauren wants to compete for the modern consumer. Earlier this month, GlobalData Retail managing director Neil Saunders lambasted the brand's "fragmented nature" in a note to clients, calling its holiday department store displays "little short of abysmal."
Ralph Lauren Corp was down 0.81% as of 10:30 a.m. ET while LVMH was up 0.49%.