America’s New Fashion Powerhouse Is Still Dwarfed by Europe’s Luxury Giants
Elon Musk for the title of the world’s richest person. European Giants The European conglomerates also benefit from deep management benches and equally deep pockets that they use to nurture and grow their brands. When LVMH acquired Tiffany for about $16 billion in 2021, it invested heavily to revamp the jeweler’s marketing, including by hiring Beyoncé and Jay-Z as brand ambassadors.
The size advantage was recently on display when Louis Vuitton mounted a menswear show on the historic Pont Neuf bridge in Paris. Guests were ferried in on boats to a gilded runway. Pharell Williams, the brand’s new creative director for menswear, rapped alongside Jay-Z.
The show quickly garnered more than one billion views on social media, according to the company. Tapestry and Capri have gone toe-to-toe in recent years snapping up brands in an effort to create conglomerates of their own. But they have been hard pressed to keep up with the deal making.
Gucci owner Kering last month said it was buying a stake in Valentino, adding the Italian luxury label to a portfolio that also includes Balenciaga and Saint Laurent. Kering recently appointed a new designer at Gucci and shuffled its executive ranks to revitalize its largest brand, which has fallen out of favor. Tapestry and Capri are betting they will be stronger together than apart.
Capri shares surged 55% on the news, which promises a big cash premium from where the stock had recently slumped. Tapestry shares, which had climbed more than 23% over the past 12 months, fell 12% on Thursday. It will take on debt to finance the acquisition.
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