A Sea Change in Luxe: Tough Market Favors Buyers Over Sellers

When sales of luxury products were riding high, it seemed just about any designer was ripe for acquisition. But now it's a buyers' market.

So what of the potential cast-off brands, which luxury groups made conquests of, like so many notches on a bedpost? Maybe there’s a buyer waiting in the wings for some. One thing is certain: Those doing the acquiring will be much more realistic about company valuations now than they were in the any-price-goes Nineties.

"Today, for a designer to be viable is no different from any other company," Ruzow said. "They have to be profitable. They might lose a little money on the couture or rtw side of the business because that’s the show and you have to have a show, but they have to be profitable with fragrance and accessories. At the end of the day, they have to make money overall, and few designers do."

Page:  « Previous ...
load comments


Sign in using your Facebook or Twitter account, or simply type your comment below as a guest by entering your email and name. Your email address will not be shared. Please note that WWD reserves the right to remove profane, distasteful or otherwise inappropriate language.
News from WWD

Sign upSign up for WWD and FN newsletters to receive daily headlines, breaking news alerts and weekly industry wrap-ups.

getIsArchiveOnly= hasAccess=false hasArchiveAccess=false