Saturday, April 12, 2008
Friday, April 11, 2008
Thursday, April 10, 2008
Tuesday, April 8, 2008
Monday, April 7, 2008
The Hundreds is Huger.
Luxury goods behemoth acquires Los Angeles based apparel company in what is being constituted as "street innovative."
By Kazie Holiday, writer-reporter
LOS ANGELES (Fortune) -- In what came as surprising news on a Tuesday morning in Hollywood, California, local streetwear brand The Hundreds has been acquired in a covert high-stakes bidding war by Moet Hennessy - Louis Vuitton S.A., also known as LVMH.
From what has been gathered in a vague press release distributed by LVMH earlier this morning, the French holding company agreed to acquire privately-held The Hundreds is Huge, Inc. in a deal worth approximately $18 million in cash and stock.
The Hundreds, based in the Fairfax District of L.A., designs and distributes apparel that caters to the burgeoning "streetwear" category, a hotbutton forecasting term for what is next in hip, young fashion. Apparently, this is what initially attracted LVMH to the buzzworthy upstart label, which has been having difficulty as of late in maintaining the attention of young consumers. "Streetwear is natural to us," LVMH CEO and Chairman Bernard Arnault stated at a charity gala last Fall. "After all, Louis Vuitton did create the world's first all-over-print."
It seems that Arnault's sentiments were a prelude to what is already being marked as one of the most-talked about, and scrutinized, business maneuvers in the fashion world this year (This comes days after Gucci announced it's plans to make skateboarding sneakers.) As one of the world's largest luxury goods conglomerates, LVMH was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they merged with fashion house Louis Vuitton to form the current group.
LVMH is also the parent of around 60 sub-companies that each manage a small number of prestigious brands, including Belvedere, Donna Karan, Fendi, Givenchy, and Sephora. These daughter companies are, to a large extent, run autonomously, thus The Hundreds will likely follow suit.
The terms of the agreement include LVMH paying $9 million in cash for the company, issuing 1.6 million restricted shares of LVMH common stock and assuming approximately $32 million in debt. LVMH believes the purchase will be mildly accretive to earnings per share in the current year and estimates it will improve earnings per share by 6 cents in fiscal year 2008.
LVMH is based in Paris, France. The company is listed on the Euronext Paris exchange and is a constituent of the CAC 40 index. As of 2007, the group had a turnover of 15,3 billion euros with a net income of 2 billion euros. LVMH operates over 1,900 stores worldwide. Its current business plan aims to tightly control the brands it manages in order to maintain and heighten the perception of luxury relating to their products. For example, Louis Vuitton products are sold only through Louis Vuitton boutiques found in upmarket locations in wealthy cities or in concessions in other luxury goods shops (such as Harrods in London). This practice contrasts greatly with less exclusive brands which can be bought in shopping malls around the world.
By Kazie Holiday, writer-reporter
LOS ANGELES (Fortune) -- In what came as surprising news on a Tuesday morning in Hollywood, California, local streetwear brand The Hundreds has been acquired in a covert high-stakes bidding war by Moet Hennessy - Louis Vuitton S.A., also known as LVMH.
From what has been gathered in a vague press release distributed by LVMH earlier this morning, the French holding company agreed to acquire privately-held The Hundreds is Huge, Inc. in a deal worth approximately $18 million in cash and stock.
The Hundreds, based in the Fairfax District of L.A., designs and distributes apparel that caters to the burgeoning "streetwear" category, a hotbutton forecasting term for what is next in hip, young fashion. Apparently, this is what initially attracted LVMH to the buzzworthy upstart label, which has been having difficulty as of late in maintaining the attention of young consumers. "Streetwear is natural to us," LVMH CEO and Chairman Bernard Arnault stated at a charity gala last Fall. "After all, Louis Vuitton did create the world's first all-over-print."
It seems that Arnault's sentiments were a prelude to what is already being marked as one of the most-talked about, and scrutinized, business maneuvers in the fashion world this year (This comes days after Gucci announced it's plans to make skateboarding sneakers.) As one of the world's largest luxury goods conglomerates, LVMH was formed after mergers brought together champagne producer Moët et Chandon and Hennessy, a leading manufacturer of cognac. In 1987, they merged with fashion house Louis Vuitton to form the current group.
LVMH is also the parent of around 60 sub-companies that each manage a small number of prestigious brands, including Belvedere, Donna Karan, Fendi, Givenchy, and Sephora. These daughter companies are, to a large extent, run autonomously, thus The Hundreds will likely follow suit.
The terms of the agreement include LVMH paying $9 million in cash for the company, issuing 1.6 million restricted shares of LVMH common stock and assuming approximately $32 million in debt. LVMH believes the purchase will be mildly accretive to earnings per share in the current year and estimates it will improve earnings per share by 6 cents in fiscal year 2008.
LVMH is based in Paris, France. The company is listed on the Euronext Paris exchange and is a constituent of the CAC 40 index. As of 2007, the group had a turnover of 15,3 billion euros with a net income of 2 billion euros. LVMH operates over 1,900 stores worldwide. Its current business plan aims to tightly control the brands it manages in order to maintain and heighten the perception of luxury relating to their products. For example, Louis Vuitton products are sold only through Louis Vuitton boutiques found in upmarket locations in wealthy cities or in concessions in other luxury goods shops (such as Harrods in London). This practice contrasts greatly with less exclusive brands which can be bought in shopping malls around the world.
Subscribe to:
Posts (Atom)
