LVMUY has built up a 20.2% stake in Hermes, however, it faces opposition from Hermes’ founding family who won a waiver to set up a new holding company. This structure will have 50.2% of Hermes’ shares and the right of first refusal on an addition 12.6%, in order to allow them to have decision making power even if they become minority stakeholders.
LVMH announced that it planned to raise its stake in Hermes International SCA to 17.1% after buying 14.2%. This purchase would be 1.45 billion euros but LVMH doesn't seek to take control of Hermes. Hermes shares have climbed 77% since the death of former CEO Dumas on May 1st.
For Q3 2010, LVMH reported a 24% increase in organic growth for revenue to €5.11 billion, which beat analysts’ estimates of €4.88 billion.
LVMH announced their new hotel business segment named LVMH Hotel Management. LVMH will develop resorts using the name of its Bordeaux winery, Cheval Blanc. The company tested the concept with a first location that opened in the French ski resort Courchevel in 2006. Two more hotels are scheduled to join the new chain by 2012 in Oman and Egypt, the company said
As the global economy seemed to turn around from the financial crisis, there have been reports that sales in luxury goods have been on the rise. LVMH, with its prestigous brand image, stands to make the most of these sales as the rich begin buying luxury goods again.
LVMH's share prices decreased in markets worldwide as investors began to doubt demand for its products in China.
LVMH won its lawsuit against eBay for the sale of counterfeit LVMH products through eBay. The victory signals a substantial crack down on the black market for knockoff luxury goods that hurts LVMH's sales and brand image.
LVMH is set to acquire the Plymouth based luxury yacht maker for a purchase price of $390 billion. Additionally, current management of Princess Yachts is expected to remain the same
Analysts from Credit Suisse, JP Morgan, and Deutsche Bank reduced expectations for LVMH stock price amid global economic turmoil and downward pressure on profits due to adverse currency exchange rates.
