Luxury fashion conglomerate LVMH Moët Hennessy Louis Vuitton is back at it again, this time making major waves with its latest investment moves. This week saw the French powerhouse secure minority stakes in various labels, particularly drawing attention with its acquisition of Swedish brand Our Legacy. Meanwhile, rumors of Moncler's possibly acquiring Burberry circulated, stirring excitement and sending Burberry's share prices soaring.
Our Legacy, known for its "quiet hype" branding and avant-garde minimalism, has emerged as one of the rising stars of men’s fashion. Co-founded by Jockum Hallin, Cristopher Nying, and Richardos Klaren back in 2005, the brand's sales have skyrocketed, hitting €40 million ($43.6 million) last fiscal year, and doubling every year since 2020. Nestled comfortably between high-street and luxury prices, their items often see prices around €600 for boots and €400 for their trendy jeans. This sweet spot seems to resonate well with fashion-conscious millennials and Gen Zs who are on the lookout for stylish yet accessible pieces.
Julie Bercovy, CEO of LVMH Luxury Ventures Advisors, praised Our Legacy for its strong brand identity and financial performance, referring to their aesthetics as "youthful quiet luxury." This is significant for LVMH, particularly as its flagship brands have seen some flattening growth. The conglomerate's strategy appears to be shifting, as they aim to diversify their investments beyond traditional luxury brands and tap more contemporary and streetwear names, offering them significant investment backing.
The terms of LVMH's investment remain undisclosed, but similar past deals suggest they could be exiting with 25% ownership for upwards of $25 million. This suggests Some expect this investment to amplify Our Legacy's visibility and impact, allowing them to expand their direct-to-consumer channels and reach new markets important for their long-term growth. Hallin described the partnership as elevatory, indicating they now feel like they operate at "a different, new level" thanks to the LVMH endorsement.
On the other side of the news, the fashion world buzzed with the potential acquisition of Burberry by Moncler. This speculation led to Burberry’s shares spiking by 8% after rumors hinted at Moncler taking the plunge to acquire the British fashion icon. These rumors arose amid Moncler's recent on-stage dips as it reported falling sales, raising eyebrows about their ability to integrate and leverage Burberry’s brand. Industry chatter suggested this acquisition could yield significant synergies for both brands, especially as they navigate through challenging market conditions. Faced with declining consumer attention, Burberry has been tirelessly working on resurrecting its brand identity under the new direction of head designer Daniel Lee.
If Moncler's interest turns tangible, we could see the formation of a new luxury outerwear powerhouse. Moncler's earlier acquisition of Stone Island did not yield the expected performance boost, yet the strategies drawn from relaunching brands through fresh ideas suggest the potential for Burberry's revival could be on the cards. Meanwhile, within the luxury sector, brands like Chanel are reinforcing their positions. Chanel recently presented its Cruise 2024/25 show globally, relaunching it once more in vibrant Hong Kong, complete with celebrity appearances and short films catering to this dynamically important market.
Conversely, the fashion industry has recently seen varied approaches to collaborations and product launches. Supreme has officially partnered with Mitchell & Ness for our favorite NCAA caps, ensuring sports and streetwear set the tone for this season. The popular range includes hoodies, jerseys, and varsity jackets, showcasing collegiate styles combined with the classic Supreme branding.
Meanwhile, C.P. Company and adidas have revived their collaborative spirit, celebrating the SPZL's tenth anniversary with new apparel and accessories inspired by both brands’ unique heritage. This capsule features innovative designs and pay homage to their shared history, making it one of the highlights of the sartorial calendar.
On the outdoor apparel front, Arc’teryx took the leap with its new “Grottoflage” collection, introducing limited-edition skis and garments adorned with the brand's logos—diving deep to connect distinctly with its community of outdoor enthusiasts through multifunctional design. This innovative step certainly aligns with current consumer trends where outdoor and luxury brands intermingle.
And not to be outdone, Salehe Bembury's partnership with brand Mutsu has birthed the intriguing “Absorb Til Death” collection. Known for his ingenious designs stemming from traditional influences, Bembury intertwines his identity with Mutsu’s distinctive Japanese boro-inspired aesthetics, resulting in unique, limited pieces trending within fashion circles and beyond.
With elections coming up, all eyes are likely to be focused on how these investment and acquisition moves could shape the future direction of these esteemed brands.