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Luxury Mkt May Have More M&A in 2014, Exane Says, Prefers LVMH 2013-11-27 09:54:37.880 GMT
By Heather Burke Nov. 27 (Bloomberg) -- More luxury M&A possible as organic growth becomes tougher, Exane says. * Large amounts of cash may lead luxury cos. to consolidate industry * LVMH most likely to do M&A, both bolt-on and “transformational” * Mkt may face a continuation of slowing China growth, although Chinese luxury demand isn’t filled, Exane says. * Demand in China, rest of world should continue to support sector * U.S. demand appears to be slowing; Italian, French luxury spending dropping * Est. 2014 luxury mkt growth 5%-6% ex-FX * Cos. may focus more on LFL sales growth, expanding e- commerce, retail development * Prefers “structurally advantaged” cos. like Swatch, Richemont, “underappreciated self-help stories” like LVMH
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To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net