LVMH Will Buy Burberry In 2014.

< p > UBS UBS analysts today list a list of potential European companies in 2014 a href= "//www.sjfzxm.com/news/index_c.asp" > /a > Company. Among the 27 companies, 13 are British companies, while the famous traditional luxury goods company BurberryGroupPLC (BRBY.L) Boboli is on the list.

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As early as the beginning of this year, luxury analysts and investment bank analysts said that "a href=" //www.sjfzxm.com/news/index_c.asp "LVMH" /a "Mo Mo tHennessyLouisVuittonSA (LVMH.PA) MOET & CHANDON Hennessy LV group is likely to acquire BurberryGroupPLC (BRBY.L) Boboli to make up for the increasingly sluggish sales of the Louis Weedon brand.

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< p > Paris time January 31, 2013, LVMH released 2012 earnings report, of which < a href= "//www.sjfzxm.com/news/index_c.asp" > Fashion < /a > and leather goods sector revenue grew by 7%, and the profit growth of 6% was the lowest growth rate since 2009.

According to data from ExaneBNPParibas Bank of Paris, the LouisVuitton brand, which sells 3/4 of the clothing and leather goods sector in 2012, has declined from 6% in 2011 to 6% in 2011. ExaneBNPParibas's luxury research director, LucaSolca, said in January that LouisVuitton arrived at a delicate moment.

In the first three quarters of this fiscal year, we saw that LouisVuitton Louis Weedon's brand performance continued to slump.

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< p > according to the relevant data, in the first 9 months ending September 30, 2013, the income of LVMH Mo t Hennessy Louis Vuitton SA (MC.PA) MOET & CHANDON Hennessy LV group declined by 1% to 7 billion 139 million euros, and the income of watches and jewelry departments dropped 2.3% to 1 billion 987 million euro yuan.

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Less than P > two LVMH's leading fashion sectors are expected to decline in the current fiscal year. In the global luxury market, especially in the case of a slowdown in the Chinese market, it is expected that this part of the business may continue to decline in 2014. Therefore, LVMH has to increase the strength of two sections through acquisitions. In addition, LVMH also has a tradition of continuous large purchases. For example, in March 2011, the total purchase of Bulgari Bvlgari, including debt, amounted to 4 billion 300 million euros in 2013, and the 80% equity trading of Loro Piana, known as cashmere Alpaca fabric in Italy, in 2013, which amounted to 2 billion euros.

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< p > in the stock market, LVMH has also been affected by many strong growth competitors, especially the new players in Italy stock market, such as shoe brand Ferragamo and cashmere brand Brunello cucinelli, respectively, showing an increase of 67.8% and 90.5% respectively.

Its Swiss owned Cartire and Van Cleef & Arpels (van Cleef & Arpels) brand makes full use of its strong position in the jewelry industry.

The jewelry industry is seen as a more promising future than the current competitive leather industry.

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"P Luca Solca, a bank analyst in Paris, France, said:" we feel that the jewelry industry has greater advantages in terms of growth, fewer industry companies, and big brands are still very few.

Population aging also plays a role.

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Analysts at Citibank P recently also said that LVMH group is facing "uncertain growth and profitability prospects, while the joint structure of the group is growing. Most acquisitions (23% of Hermes, Bvlgari and Loro Piana) have also diluted group profits and return on investment funds".

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