CHECKOUT COUNTER: LVMH | M&S | Breitling | Amazon
A weekly round up of the hottest international retail and consumer news.
1. LVMH in Dior coup
Paris-based LVMH says it will integrate the entire Christian Dior brand in its portfolio. In terms of the two-stage deal, valued at €12.1bn, the Arnault family will offer to buy the 26% of Christian Dior it doesn’t already own for €172/share in cash and 0.192 Hermès International shares for each Christian Dior share. LVMH will acquire Christian Dior Couture from Christian Dior in the second part of the deal.
2. M&S to try online service
Marks & Spencer (M&S) is to try out an online grocery shopping service later this year, as more of its customers shift to that method of shopping. CEO Steve Rowe says the retailer is continuing "to review food online carefully". At present M&S customers can only buy party and gift food such as wine and chocolate online.
3. Breitling to be sold
Private equity group CVC Capital Partners will buy 80% of Swiss watchmaker Breitling for about US$870m. The deal is expected to close in June and is subject to approval by competition authorities. The brand, founded in 1884, is known for precision chronometers that are often favoured by aviators. Current owner Théodore Schneider will hold the remaining 20% of the group.
4. Amazon sales surge
For the first three months of the year, Amazon had sales of $35.7bn, up from $29.1bn in the same period in 2016, as retail and cloud computing sales boomed. Net income for the quarter was $1.48/share. The world’s largest online retailer says media streaming services and growing advertising revenue also boosted figures. Next quarter, Amazon is expecting sales of between $35.25bn and $37.75bn.