La Nouvelle Tribune
Next year, powerful labels will face their old dilemma of what to do with excess cash
This year, luxury companies were more likely to try to back out of deals than to sign new ones. That could soon change as cash piles up on the larger playersâ balance sheets, while independent brands come under pressure to invest.
Deal-making in the sector has been understandably muted during the pandemic. This month brought an exception: Italian apparel brand Moncler announced a tie-up with Stone Island in a transaction that valued its smaller streetwear competitor at â¬1.2 billion, or $1.4 billion at current exchange rates. Otherwise, the tone of 2020 was set by LVMH Moët Hennessy Louis Vuittonâs legal push to get out of its pre-pandemic $16 billion bid for U.S. jeweler Tiffany & Co., which was eventually settled out of court with a minor price discount.