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LVMH Group Sell DKNY To Buy Hermes?

It is heard that the world's top luxury brands group LVMH's is going to sell Donna Karan's DKNY brand. No waves are without wind, now it is time of the expansion phase of LVMH Group's big 'purchase', in order to reserve funds, and it seems that DKNY becomes a lamb to be slaughtered.

DKNY

In order to maintain a consistent level of high-end luxury of LVMH Group, DKNY Street style has become the less developed which could not match LVMH ambition to conquer the international luxury market again. Time to return in 1996, Donna Karan International was listed in the United States, DKNY's success attracted LVMH's interest and in the final in 2001 LVMH acquired Donna Karan International. Times had changed, and now Donna Karan Collection has been placed on the auction. Currently the exact response to the rumors has not yet come about, but in Donna Karan's personal web page, she wrote down a sentence "DKNY is the pizza to Collection's caviar. (Relative to the Collection this piece of caviar, DKNY is a Pizza)" ---- DKNY is important in New York, but cannot stand firm in the international luxury goods circle.

How Much Does DKNY Worth?

According to the assessment of investment experts, LVMH may be able to get 100 million dollars in assets from the deal. Some people think that there may be businesses to take over the brand, Furthermore Donna Karan herself can also purchase DKNY again. However, even if Donna can do this, can she be affordable for the high price that LVMH put out?

Moet Hennessy Also Sold By Auction?

The European private investment firm disclosed that LVMH's Moet Hennessy Group too is to be auctioned. Reason One: The recently announced 2009 first half year revenue in the field of wine sales fell by 17%. Reason Two: After selling DKNY and Moet Hennessy the greedy CEO Bernard Arnault could stretch to a bigger 'cake'---- such as Hermes.


 

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